This week you issued that stock sale. Your cash reserves are up at $3 billion. My understanding is that this allows you to pause Bitcoin sales for the time being. But talk us through, you know, what the next several months look like. Do you plan to sell more Bitcoin? And if so, how much?
Hey, thanks for having me. We have really evolved from being a Bitcoin treasury company to a full digital capital platform. We're the world's largest identified holder of Bitcoin in the world. We have over 840,000 Bitcoin. Digital credit has been launched in the last year in the form of such as ten and a half billion dollars. So we have a responsibility to our common shareholders, our preferred shareholders, and to Bitcoin, of course. We've accumulated $3 billion in cash because we listened to our preferred shareholders, and they said having liquid cash on our balance sheet in the short term is important. And we also sold Bitcoin to be able to show liquidity with our Bitcoin. Yes, we will continue to issue capital, could be in the form of MSTR, could be in the form of Bitcoin, and we're going to make the decisions that are best for our shareholders over time.
Well, could it also potentially be in the form of STRC, that of course are preferred shares? They're known as Stretch. My understanding is that you last issued Stretch in mid-May. Of course, it's been trading at a discount here. Do you plan to issue Stretch again in the near future?
Yeah. Our plan is to get Stretch back to par. Unsure how long that will take. Building up the U.S. dollar reserve was a big part of that, and we'll continue to build that. And yeah, when Stretch gets back to par, we'll issue more, we'll buy Bitcoin, and we may continue to beef up our U.S. dollar reserve. That's a big part of our capital plan. We'll issue our preferred over time because it's very accretive to our Bitcoin per share, which is accretive to our shareholders.
Well, I am curious just about the structure going forward. I mean, to get back to par, is there a sense here that you can do that, whether it's with selling more Bitcoin or issuing more equity? Have you determined what might actually be the best path to get there, or the most efficient path to get there?
We think the first thing is the U.S. dollar reserve, right? I think we've learned over the course of the last couple of months that having that liquid access to the U.S. dollar capital, whether it be one, two, or three years, is quite important. And we saw when we increased it in the last couple of weeks, we got Stretch up from a low in the 75 range to close to 90. So we'll continue to build that. We increased the dividend. I don't think the dividend is as much of a factor. And I think a track record of success and a track record of execution, and then, of course, education, where we're a year into the product. A lot of financial products take two or three years to mature. So we're early, we're learning, we're listening to the market. And the great thing is, there are built-in mechanisms with the market, for example, going at par, right, and staying at par. That's a mechanism that lets us know what we're doing right and what we're not doing right, and what we can improve upon.
What's the communication, though, with shareholders overall? There's been a lot more focus, obviously, on the preferred shares. But I mean, you guys issued a ton of common equity in the preceding years, and I am curious if there is any sense in trying to reconcile with some of those folks who bought a lot higher than where that 9673 price stands right now.
Our shareholders understand our primary goal is over time to outperform Bitcoin, which is an extremely volatile asset. Vol is somewhere in the 30, 40, 50 range. And they understand that MSTR is built to outperform Bitcoin. And as a result, when Bitcoin goes up, MSTR typically goes up more. When Bitcoin goes through a bearish cycle like it is right now, MSTR can perform a little bit worse. But as long as MSTR's price is greater than the net asset value of our Bitcoin, it means that our shareholders are giving us credit for the performance above Bitcoin. And when we do that, we can issue more equity. For the most part, we talk to our shareholders all the time. There's quite a few constituencies, you know, we're one of the most liquid stocks in the world. And when we talk to our shareholders, institutional, retail, we look at what people say on social media. We take a lot of comments and we bring that all in, and it's great to have the feedback.
