Cantor said Strategy’s (MSTR) top priority is restoring its STRC preferred stock to par, arguing that doing so is key to the company’s bitcoin reboot. acquisition engine and by strengthening its capital structure.
After meeting with its executive chairman Michael Saylor, the Wall Street investment bank said it was more confident in management’s plan to stabilize the balance sheet and restart 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. A few minutes ago, Strategy announced the sale of $216 million worth of bitcoin, with the money to be used to fund STRC 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 therefore a good time to either purchase STRC – capturing both the par spread as well as the instrument’s substantial yield – or to purchase MSTR common stock – which is expected to rally as the overall capital structure strengthens,” analysts led by Ramsey El-Assal said in Monday’s note to clients.
