Cantor said Strategy’s (MSTR) top priority is restoring its STRC preferred stock to par, arguing that doing so is key to restarting the company’s bitcoin acquisition engine and strengthening its capital structure.
After meeting with Executive Chairman Michael Saylor, the Wall Street investment bank said it came away 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 was down 3.4% at $97.34. Just minutes ago, Strategy announced the sale of $216 million of bitcoin, with the cash to be used to fund STRC dividends.
Rather than viewing preferred holders, common shareholders and bitcoin investors as competing interests, the bank argued STRC is the foundation of Strategy’s funding model.
“This makes it a good time to either buy STRC—capturing both the spread to par as well as the instrument’s substantial yield—or to buy shares of MSTR common—which should rally as the overall capital structure moves to firmer footing,” analysts led by Ramsey El-Assal said in the Monday note to clients.