Strategy Executive Chairman Michael Saylor said on the company’s second-quarter earnings call that the firm may no longer keep its capital almost entirely in Bitcoin, pointing instead to a future mix of cash and BTC. He said that “the best way to buy the most bitcoin may not be to buy the most bitcoin immediately.”
After the call, both TD Cowen and Benchmark maintained buy ratings on the stock. In their view, management’s near-term priority has shifted to bringing Strategy’s STRC preferred shares back toward par value so the instrument can function again as an effective financing vehicle.
TD Cowen analyst Lance Vitanza said the clearest takeaway from the call was management’s strong focus on STRC. Company executives repeatedly framed restoring the security to par as a core objective, while also noting that institutional adoption was still increasing despite the recent price dislocation. Benchmark analyst Mark Palmer took a similar view, saying that much of the 90-minute call centered on returning STRC to the $99 to $100 range so it can once again serve as a primary engine for raising capital to buy Bitcoin.
Strategy Executive Chairman Michael Saylor said on the company’s second-quarter earnings call that, while the firm previously kept its capital nearly “100% allocated to Bitcoin,” it may adopt a mix of cash and BTC going forward.
On the call, Saylor said, “the best way to buy the most bitcoin may not be to buy the most bitcoin immediately.”
TD Cowen and Benchmark keep buy ratings
Following Strategy’s second-quarter call, both TD Cowen and Benchmark reiterated buy ratings on the stock.
Both firms said management’s main objective has shifted toward bringing the price of Strategy’s STRC preferred shares back closer to par, which would restore the security’s usefulness as a financing tool.
TD Cowen says STRC was the key message
TD Cowen analyst Lance Vitanza said the most important message from the call was management’s strong focus on STRC.
According to Vitanza, company executives repeatedly said that returning STRC to par was a core goal. He also noted that management said institutional adoption of the security was still rising even though it had recently traded away from its intended price level.
Benchmark points to a $99-$100 target range
Benchmark analyst Mark Palmer made a similar point. He said Saylor and his team spent most of the 90-minute call focused on the same objective: bringing STRC back to the $99 to $100 range so it can again become the company’s main engine for raising funds to buy Bitcoin.
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