As the share price of Strategy (MSTR) continues to decline, executive chairman Michael Saylor has been prompted to reassure investors for the second time within a fortnight. Last Friday, Saylor responded to persistent rumors circulating in the market, categorically dismissing claims that the company was planning to sell its Bitcoin holdings. He asserted that there is “no truth to the rumour.”
The situation escalated on Thursday, as investor anxiety heightened following a warning from JPMorgan regarding a looming decision by MSCI. The financial giant indicated that this decision could result in MSTR being removed from prominent equity indices, raising concerns about potential further declines in share price.
In a bid to quell fears, Saylor took to social media platform X, where he reiterated the company’s standing within the MSCI framework. He emphasized that Strategy operates as a publicly traded company with a fundamental software business valued at around $500 million. “Strategy is not a fund, not a trust, and not a holding company,” Saylor stated, clarifying the company’s operational focus and unique treasury strategy that leverages Bitcoin as productive capital.
Saylor elaborated on the distinction between Strategy and other investment vehicles, highlighting that while funds and trusts typically passively hold assets, Strategy is actively engaged in creating and structuring products. He positioned the company as a pioneering entity in the realm of Bitcoin-backed structured finance. This year alone, he noted, Strategy has executed five public offerings of digital credit securities—designated as STRK, STRF, STRD, STRC, and STRE—which collectively represent over $7.7 billion in notional value.
He concluded by asserting that the innovative approach Strategy has taken cannot be mimicked by any passive investment vehicle or holding company, reinforcing its unique market position. Despite Saylor’s reassurances, MSTR shares fell an additional 3% on Friday, trading around $171.
