Michael Saylor Outlines Strategy’s Bear Market Playbook at Bitcoin Vegas

Disclaimer: The analyst who wrote this piece owns shares of Strategy (MSTR)

At the Bitcoin conference in Las Vegas, Strategy (MSTR) Executive Chairman Michael Saylor was asked how the company would respond if its multiple to net asset value (mNAV) fell below 1, as it did during the previous bear market.

In response, Saylor drew an analogy to the Grayscale Bitcoin Trust (GBTC), stating, “GBTC is a closed-end trust… a corporate entity that has no operational flexibility to manage its capital structure.”

He emphasized that unlike GBTC, Strategy is an operating business with the ability to take on debt and manage its capital dynamically. Saylor argued that “for any company to fall down to below 1 mNAV, the shareholders have lost faith in the management structure of the business.”

If Strategy’s stock “went to $1 tomorrow,” he said, the company would respond by selling its preferred stock or fixed income instruments STRK and STRF and use the proceeds to repurchase common stock, thereby recapitalizing the company.

Highlighting the importance of flexibility, Saylor stated, “To create value, you need to create option value to generate as much optionality as possible. The more options, the greater the value.”

He concluded by asserting, “The thing that makes our company a monster is having multiple at-the-market offerings (ATMs) in multiple capital markets,” underscoring Strategy’s multi-channel access to liquidity and financial resilience.