Cantor Says STRC Recovery Is Key for Strategy

Cantor says a recovery in the preferred stock is central to Strategy’s financing model. The sale of $216 million in Bitcoin is also meant to help cover STRC dividends.

Key Takeaways

• Cantor says the most important step for Strategy is getting STRC preferred stock back to par so the financing model can start working again.
• The bank expects Strategy to keep building cash reserves to cover STRC dividends and improve the capital structure.
• Cantor believes MSTR could gain if STRC recovers and Strategy is able to accelerate Bitcoin buying again.

Cantor says the key to getting Strategy’s financing model back on track is a recovery in STRC preferred stock to par. In the bank’s view, that would help the company speed up Bitcoin purchases again while also making the capital structure stronger.

Following a discussion with executive chairman Michael Saylor, Cantor said it came away more confident in management’s plan to steady the balance sheet and raise capital. The comments came as STRC traded at $87.79 (€77) in early Monday trading, Bitcoin hovered near $61,800 (€54,000), and MSTR fell 3.4 percent to $97.34 (€85).

STRC as a Financing Engine

Strategy also said just minutes ago that it sold $216 million (€189 million) worth of Bitcoin. The company said the proceeds will go toward STRC dividends, underscoring how tightly the preferred stock, common shares, and Bitcoin holdings are linked.

Cantor emphasized that these parts of the capital structure should not be viewed as rivals. Instead, the bank sees STRC as the core of the financing model, since it allows Strategy to raise capital through this channel without immediately leaning on more common share issuance.

Led by Ramsey El-Assal, the analysts said STRC looks attractive at current levels because it trades below par and offers a yield. They added that MSTR could also benefit if the broader capital structure strengthens again.

More Cash for Dividend Coverage

Cantor expects Strategy to keep adding to the cash reserves that support STRC dividends until the preferred stock moves back to par. The bank said the recent increase in dividend coverage, from about 10 months to 18 months, is the first step in that process. If necessary, management could also use other tools, including buybacks, but Cantor said cash reserves remain the main lever.

The bank also downplayed concerns about upcoming convertible debt maturities. In Cantor’s view, Strategy should be able to restart its STRC-driven capital engine before those repayments become a real issue, or refinance the debt if needed.

Why This Matters

For European crypto investors, the setup matters because Strategy remains one of the most closely watched public Bitcoin proxies. The company continues to sit at the intersection of crypto markets, capital markets, and institutional demand, especially now that preferred stock, debt, and common shares are all part of how new Bitcoin purchases are funded.

Cantor expects MSTR shares could benefit once STRC recovers, since that would give Strategy room to issue shares again later and buy more Bitcoin. In other words, Strategy’s stock is not just a bet on Bitcoin itself, but also on how effectively the company manages its capital structure.

The recent Bitcoin sale to cover preferred dividends fits into that same picture. Strategy previously sold 3,588 Bitcoin and raised $216 million to strengthen dollar reserves and dividend coverage.

The debate over STRC’s role in the financing model has been building for some time. In an earlier analysis, it was already clear that Strategy's preferred stock is falling sharply, and retail investor confidence is fading, largely because the instrument’s price remained well below its intended par value.