Strategy Executive Chairman Michael Saylor said on the company’s second-quarter earnings call that the firm may no longer keep capital almost entirely in Bitcoin, signaling that a mix of cash and BTC could be used going forward. Speaking on the call, Saylor said, “Perhaps the best way to buy the most bitcoin is not to buy the most bitcoin immediately.”
After the earnings call, both TD Cowen and Benchmark maintained their buy ratings on the stock. The two firms said management’s main focus now appears to be bringing Strategy’s STRC preferred shares back toward par value so they can function again as a financing tool. TD Cowen analyst Lance Vitanza said the most important takeaway from the call was management’s strong emphasis on STRC, while Benchmark analyst Mark Palmer said Saylor and his team spent much of the 90-minute call discussing the goal of returning STRC to the $99 to $100 range.
According to the analysts, that would allow STRC to resume its role as Strategy’s main engine for raising capital to buy Bitcoin.
According to The Block, Strategy Executive Chairman Michael Saylor said on the company’s second-quarter earnings call that while the firm had previously kept capital “almost 100% allocated to bitcoin,” it may adopt a mix of cash and BTC going forward.
On the call, Saylor said, “Perhaps the best way to buy the most bitcoin is not to buy the most bitcoin immediately.”
TD Cowen and Benchmark keep buy ratings
Following Strategy’s second-quarter earnings call, TD Cowen and Benchmark both maintained buy ratings on the stock.
Both firms said management’s central objective has shifted toward bringing the company’s STRC preferred shares back near par value, allowing the security to recover its ability to serve as a financing tool.
STRC was a main focus on the call
TD Cowen analyst Lance Vitanza said the key message from the call was management’s strong focus on STRC. Company executives repeatedly said getting STRC back to par is a core goal, and added that institutional adoption is still increasing even though the security has recently traded away from that level.
Benchmark analyst Mark Palmer expressed a similar view. He said Saylor and his team spent most of the 90-minute call centered on the same objective: returning STRC to the $99-$100 range so it can once again become the company’s primary engine for raising capital to buy bitcoin.
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