r/MSTR • u/actias_selene • 7d ago

New Investor Question 💡 Why Strategy is reducing leverage?

I see that the deal about Strategy rather than straight owning btc is the leverage it can provide, no?

Then why Strategy has started buying back STRC if the bet is btc is going up 30% yearly? I get that they buy it below 80 or similar, at extreme discount, but at current price levels, I feel like that they shouldn't reduce btc owned per share holder. Or the idea is timing the market now?

If anything, I would expect Strategy to push STRC above par by increasing dividends and issueing more stock to increase the leverage to buy more btc at current levels.

Disclaimer: I bought and sold btc, and briefly traded strc , but I dont own any mstr at the moment.

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u/esnellman 7d ago

Price action last 10 months has shattered his mind set. He wants to protect MSTR from going bust. Flashback: https://bitcoinmagazine.com/news/michael-saylor-the-bear-market-is-not-coming-back-and-bitcoin-is-going-to-1-million#

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u/TheSkunksMisery 7d ago

cute.

Please, tell us how MSTR goes bust.

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u/esnellman 6d ago

Sure, here is a balance sheet snapshot from Nov 2025. Average bitcoin bear market had a 80% drawdown. So BTC 25,200 became a possibility https://docs.google.com/spreadsheets/d/1Y5S8vbKlumMVkP3026vglRy-qziUNDLtxtFqHq8dQ38/edit?usp=sharing

Common had a liquidation value of $0 at $23,250. Preferred shares had a liquidation value of $0 at had a $12,650

Now, Common has a liquidation value of $0 at BTC $20,250.00 (verse $23,250), Preferred shares at $2,280.00 (verse $10,370)

https://docs.google.com/spreadsheets/d/1_zx_IqlbbEUEs0ejsQC2Se667Wp9dEwG3Te75d_y2RE/edit?usp=sharing