Michael Saylor "Even if the strategy stock price drops to 1 Dollar, recovery is possible" mentioned at Bitcoin 2025

## Discussing responses when stocks become undervalued

Michael Saylor, chairman of MicroStrategy (formerly known as Strategy), spoke at the "Bitcoin 2025" conference held in Las Vegas. He discussed the response if the company's stock is traded at a discount.

It is stated that they can cope even if the stock price falls to 1 dollar.

This is a statement in response to a probing question about whether the stock price to net asset value (mNAV) of Strategy Corp could fall below 1 in the event of an extreme bearish market for cryptocurrencies, and whether that would impact the company's strategy.

mNAV is an indicator that shows the extent to which a company's stock price is trading at a premium or discount to its net asset value. Typically, if this is above 1, the stock price is considered to be at a premium (overpriced), and if it is below 1, it is seen as a discount (underpriced).

Mr. Sailor pointed out that he has seen examples online where Grayscale's Bitcoin (BTC) investment trust "GBTC" was traded at a discount before its past ETF conversion.

In addition, unlike trust companies, Strategy Corporation claims that it can buy, sell, and recapitalize stocks. It stated that there are means to cope even if the company's stock price were to fall to as low as 1 dollar.

If the stock trades at 1 dollar tomorrow, we would sell preferred shares instead of common stock. We would sell the over-collateralized shares at a 10 to 1 ratio against Bitcoin, yielding 10%. And that would generate billions of dollars in profit.

By generating profits in this way, it is expected that the value will return to stocks as investors recognize it.

Mr. Sailor is confident in the long-term rise of Bitcoin prices and has confidence in Strategy's operational capabilities in the capital markets, which is believed to be the background of the response.

What is preferred stock?

Preferred stock in English. It refers to a type of stock that has certain preferential rights, such as the right to receive dividends before common stock.

He also mentioned that if someone short-sells Strategy Corporation shares at 1 dollar, they would sell 1 billion dollars in preferred stock and use that capital to buy back common stock to enhance capital. He added that this is only possible because it is a business company, not a trust company.

Mr. Sailor pointed out that if the mNAV of a business company like Strategy Corp falls below 1, it is because shareholders may judge that its management system is irrational and destroying shareholder value.

Currently, the shares of Strategy Inc. are trading at a premium against the Bitcoin they hold.

Such premium prices also exist at Metaplanet, which adopts a Bitcoin financial strategy modeled after Strategy Corp.

Mr. Sailor also delivered a keynote speech at "Bitcoin 2025." He again recommended that investors hold Bitcoin for the long term.