Cantor said Strategy’s (MSTR) top priority is to restore 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 Chief Executive Michael Saylor, the Wall Street investment bank said it had more confidence in management’s plan to stabilize the balance sheet and revive capital raising.
In early trading on Monday, STRC changed hands at $87.79, bitcoin was near $61,800 and MSTR was down 3.4% at $97.34. Just a few minutes ago, Strategy announced the sale of $216 million worth of bitcoin, with the cash to be used to fund STRC’s dividends.
Rather than viewing preferred holders, common shareholders, and bitcoin investors as competing interests, the bank argued that STRC is the foundation of Strategy’s financing model.
“This is a good time to buy STRC (capturing both the par spread and the instrument’s substantial yield) or buy MSTR common stock, which should rally as the overall capital structure moves toward a firmer footing,” analysts led by Ramsey El-Assal said in Monday’s note to clients.
