Cantor sees STRC recovery as key to Strategy’s capital engine
Bringing Strategy’s preferred shares back to $100 is key to restarting Strategy’s capital engine, the bank said, with repeated management actions expected to support both preferred and common shareholders.
By Will Canny, AI Boost|Edited by Stephen Alpher
Jul 6, 2026, 1:06 p.m.
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Summary
Cantor said Strategy’s (MSTR) top priority is restoring its STRC preferred stock to par, arguing that doing so is key to restarting the company’s bitcoin BTC$61,463.76 acquisition engine and strengthening its capital structure.
After meeting with Executive Chairman Michael Saylor, the Wall Street investment bank said it came away more confident in management’s plan to stabilize the balance sheet and revive capital raising.
In early Monday trading, STRC changed hands at $87.79, bitcoin was near $61,800, and MSTR was down 3.4% at $97.34. Just minutes ago, Strategy announced the sale of $216 million of bitcoin, with the cash to be used to fund STRC dividends.
Rather than viewing preferred holders, common shareholders and bitcoin investors as competing interests, the bank argued STRC is the foundation of Strategy’s funding model.
“This makes it a good time to either buy STRC—capturing both the spread to par as well as the instrument’s substantial yield—or to buy shares of MSTR common—which should rally as the overall capital structure moves to firmer footing,” analysts led by Ramsey El-Assal said in the Monday note to clients.
The analysts expect the company to keep increasing cash reserves backing STRC dividends until the preferred trades back at par, calling the recent increase from roughly 10 to 18 months of dividend coverage the first step in that process. Management could take additional actions, including buybacks if necessary, but cash reserves are viewed as the primary tool.
The report also dismissed concerns over Strategy’s upcoming convertible debt maturities, saying the company should either restart its STRC-driven capital engine before major repayments come due or refinance the debt.
As STRC recovers, the bank expects MSTR shares to benefit, allowing further equity issuance to fund additional bitcoin purchases.
Wall Street bank JPMorgan said in a report last week that Strategy’s new policy allowing selective bitcoin sales to fund preferred dividends creates avoidable two-way risk, increasing uncertainty and market volatility.
Read more: JPMorgan says Strategy’s bitcoin sales policy adds ‘two-way risk’ to crypto markets
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