Cantor said Strategy’s ( MSTR ) top priority is restoring its STRC preferred stock to par, arguing that’s key to relaunching the company’s bitcoin acquisition engine and strengthening of its capital structure.
After a meeting with Chairman Michael Saylor, the Wall Street investment bank said it was more confident in management’s plan to stabilize the balance sheet and revive capital raising.
In early Monday trading, STRC changed hands at $87.79, bitcoin was near $61,800, and MSTR fell 3.4% to $97.34. Minutes ago, Strategy announced the sale of $216 million in bitcoin, with cash to be used to fund STRC dividends.
Instead of viewing preferred owners, common shareholders and bitcoin investors as competing interests, the bank argued that STRC is the foundation of Strategy’s funding model.
“This makes it a good time to either buy STRC — both capturing the spread to par as well as the instrument’s significant yield — or to buy shares of MSTR common — which should rise as the overall capital structure moves to a firmer footing,” analysts led by Ramsey El-Assal said in Monday’s note to clients.
