Cantor said Strategy’s priority is restoring its STRC preferred shares to par, framing that move as central to restarting the company’s bitcoin acquisition strategy. The bank expects management to keep supporting dividend reserves and the capital structure as STRC stabilizes.
Cantor said Strategy’s priority is restoring its STRC preferred shares to par, framing that move as central to restarting the company’s bitcoin acquisition strategy. The bank expects management to keep supporting dividend reserves and the capital structure as STRC stabilizes.
Cantor said Strategy’s recovery depends on bringing its STRC preferred stock back to par, arguing that the move is essential to restarting the company’s bitcoin acquisition engine. The view followed a meeting with Strategy Executive Chairman Michael Saylor, after which the bank said it had greater confidence in management’s plan to stabilize the balance sheet and revive capital raising.
Cantor said Strategy’s recovery depends on bringing its STRC preferred stock back to par, arguing that the move is essential to restarting the company’s bitcoin acquisition engine. The view followed a meeting with Strategy Executive Chairman Michael Saylor, after which the bank said it had greater confidence in management’s plan to stabilize the balance sheet and revive capital raising.
The development matters because Strategy’s model relies on access to capital markets to support its bitcoin accumulation strategy. Cantor described STRC as a foundation of that funding model, rather than a separate issue affecting only preferred shareholders.
According to CoinDesk, STRC traded at $87.79 in early Monday trading, while bitcoin was near $61,800 and MSTR was down 3.4% at $97.34. Strategy also announced the sale of $216 million of bitcoin, with the proceeds intended to fund STRC dividends.
Cantor’s analysts expect Strategy to continue increasing cash reserves behind STRC dividends until the preferred shares return to par. The bank noted that management had already increased dividend coverage from about 10 months to 18 months, and said further actions could include buybacks if needed, though cash reserves were seen as the main tool.
The report also said concerns over upcoming convertible debt maturities may be manageable if Strategy restarts its STRC-driven capital engine before major repayments arrive or refinances the debt. Cantor expects MSTR shares to benefit if STRC stabilizes, while JPMorgan separately warned last week that Strategy’s policy allowing selective bitcoin sales to fund preferred dividends could add uncertainty and market volatility.
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