Cantor said Strategy’s most urgent objective is to restore its STRC preferred stock to par, arguing that this step is essential for restarting the company’s bitcoin acquisition engine and reinforcing its capital structure. After meeting with Executive Chairman Michael Saylor, the Wall Street firm said it came away with greater confidence in management’s plan to stabilize the balance sheet and revive capital raising.
STRC seen as the core of the funding model
According to Cantor, preferred holders, common shareholders, and bitcoin investors should not be viewed as competing constituencies. Instead, the bank argued that STRC is the foundation of Strategy’s broader financing model. If the preferred stock returns to par, it could improve market confidence and create the conditions for the company to reopen funding channels tied to future bitcoin accumulation.
In early Monday trading, STRC changed hands at $87.79, bitcoin was near $61,800, and MSTR fell 3.4% to $97.34. Around the same time, Strategy announced the sale of $216 million in bitcoin, with the proceeds earmarked to fund STRC dividends. That move signaled that management is prioritizing support for the preferred instrument as part of a broader stabilization effort.
Cash reserves are viewed as the main repair tool
Cantor analysts led by Ramsey El-Assal said the company is expected to keep increasing the cash reserves backing STRC dividends until the preferred stock trades back at par. The report described the recent expansion of dividend coverage from roughly 10 months to 18 months as the first meaningful step in that process. Management could also pursue additional actions, including buybacks if needed, but the bank sees cash reserve accumulation as the primary mechanism.
Based on that view, Cantor said investors may find value either in STRC, through both the discount to par and the instrument’s yield, or in MSTR common shares, which could benefit as the overall capital structure moves onto firmer footing.
Debt concerns remain, but Cantor is constructive
The bank also pushed back on concerns surrounding upcoming convertible debt maturities. In its view, Strategy should either restart its STRC-driven capital engine before major repayments come due or refinance the debt. As STRC recovers, Cantor expects MSTR shares to strengthen as well, potentially enabling further equity issuance to fund additional bitcoin purchases.
Not everyone on Wall Street agrees. JPMorgan said in a report last week that Strategy’s new policy allowing selective bitcoin sales to fund preferred dividends introduces avoidable two-way risk, increasing uncertainty and market volatility. As a result, investors are likely to stay focused on how Strategy balances dividend support, bitcoin holdings, and capital structure stability in the coming months.