Markets Cantor Highlights Importance of Restoring STRC to Par for Strategy's Recovery
According to the bank, bringing the preferred shares of Strategy back to $100 is crucial for restarting its capital operations, with anticipated management actions aimed at benefiting both preferred and common shareholders.
By Will Canny, AI Boost | Edited by Stephen Alpher Jul 6, 2026, 1:06 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on
Strategy Executive Chairman Michael Saylor at the Digital Asset Summit in New York City on March 20, 2025. (Nikhilesh De, CoinDesk)SummaryShow- Cantor emphasized that restoring STRC to par is the primary focus of management and is vital for reigniting Strategy’s bitcoin acquisition operations.
- Frequent actions to enhance cash reserves and support STRC are expected, with management likely to explore the market until the preferred stock reaches par value.
- As STRC stabilizes, shares of MSTR are anticipated to benefit, enabling the company to access lower-cost capital and resume its broader acquisition strategy, according to the bank.
Cantor stated that the foremost goal for Strategy (MSTR) is to bring its STRC preferred stock back to par, asserting that this is essential for reviving the company's bitcoin acquisition efforts and bolstering its capital structure.
Following a discussion with Executive Chairman Michael Saylor, the investment bank expressed increased confidence in management's strategy to stabilize the balance sheet and boost capital raising.
In early trading on Monday, STRC was priced at $87.79, bitcoin hovered around $61,800, while MSTR experienced a 3.4% decline, trading at $97.34. Shortly before, Strategy had announced the sale of $216 million in bitcoin, with proceeds earmarked for STRC dividends.
Rather than considering preferred shareholders, common shareholders, and bitcoin investors as competing interests, the bank highlighted that STRC forms the core of Strategy's funding structure.
"This presents an opportunity to either acquire STRC—taking advantage of the gap to par and the instrument’s considerable yield—or to invest in MSTR common shares—which are likely to increase as the overall capital structure strengthens," noted analysts led by Ramsey El-Assal in a client update on Monday.
The analysts project that the company will continue to bolster cash reserves supporting STRC dividends until the preferred stock trades at par, describing the recent rise from approximately 10 to 18 months of dividend coverage as an initial move in that direction. Management may consider additional steps, such as buybacks if needed, but cash reserves are viewed as the primary method.
The report also alleviated concerns regarding Strategy's upcoming convertible debt maturities, asserting that the company should either restart its STRC-driven capital operations prior to significant repayments or refinance the debt obligations.
As STRC recovers, the bank anticipates that MSTR shares will also gain, facilitating further equity issuance for more bitcoin acquisitions.
In a report last week, JPMorgan indicated that Strategy's new approach permitting selective bitcoin sales to fund preferred dividends introduces unnecessary two-way risk, heightening uncertainty and volatility in the market.
Read more: JPMorgan warns that Strategy's bitcoin sales policy adds 'two-way risk' to crypto markets
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