In a Bitcoin Magazine program, StoneX Senior Equity Research Analyst Mark Palmer discussed Strategy (MSTR), its capital structure, and the reasoning behind StoneX’s decision to lower its price target on the stock to $435.
Discussion centered on Strategy’s funding structure
The program opened with Palmer’s views on Strategy and then moved to the company’s use of capital, including a comparison between Stretch buybacks and Bitcoin purchases. According to the segment notes, Strategy spent $176 million on buying back Stretch, compared with $29 million on Bitcoin purchases.
$4.9 billion reserve and the move back toward par
Palmer said STRC is foundational to Strategy’s fundraising structure. He also said a $4.9 billion U.S. dollar reserve is pushing the preferred stock back toward par. Another section of the discussion addressed why Strategy will not simply raise the Stretch dividend rate.
Topics covered across the episode
The chapter list also included daily dividends and ex-dividend date volatility, June’s Stretch sell-off and institutional investors, where balance-sheet stress appears first in a Bitcoin treasury structure, and a comparison of perpetual preferreds with convertible notes, including Strive’s approach.
The program also touched on U.S. dollar cash, convert paydowns, and Metaplanet’s push in the United States. Its final chapter focused on why StoneX cut its MSTR price target to $435.
Disclaimer and byline
The disclaimer said the views expressed in the show are those of the participants and do not necessarily reflect the official policy or position of BTC Inc., Bitcoin Magazine, or affiliated entities. It also said the material is for informational and educational purposes only and should not be treated as investment, legal, tax, or accounting advice, nor as a solicitation, recommendation, endorsement, or offer to buy or sell securities or other financial instruments.
The post first appeared on Bitcoin Magazine and was written by Patrick Green.