Cantor says Strategy's recovery hinges on restoring STRC to par

Markets Cantor says Strategy's recovery hinges on restoring STRC to par 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. 2 min read Make preferred on Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Make preferred on Strategy Executive Chairman Michael Saylor at the Digital Asset Summit in New York City on March 20, 2025. (Nikhilesh De, CoinDesk)) Summary Show Cantor said bringing STRC back to par is management’s top priority and the key to restarting Strategy’s bitcoin acquisition engine. Expect frequent actions to boost cash reserves and support STRC, with management likely testing the market until the preferred trades at par. As STRC stabilizes, MSTR shares should benefit as the company regains access to lower-cost capital and resumes its broader accumulation strategy, the bank said. 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 $ 61,590.10 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 MicroStrategy Bitcoin News Cantor Fitzgerald AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards . For more information, see CoinDesk's full AI Policy . Related Assets Bitcoin $ 61,590.10 1.83 % Latest Crypto News 1 Bitmine added another $74 million in ether as Tom Lee bets on Clarity Act boost 12 minutes ago 2 Michael Saylor's Strategy dramatically ups pace of bitcoin sales, raising $216 million 50 minutes ago 3 Russia's largest bank plans crypto wallet launch as Moscow clears market path 1 hour ago 4 SpaceX's Nasdaq 100 inclusion comes with a historical warning 1 hour ago 5 U.S. inflation outlook underpins bitcoin bulls after best week since March 1 hour ago 6 Crypto bounces back from the brink as altcoin optimism returns despite pockets of weakness 2 hours ago 7 Bitcoin's Sharpe Ratio slides to lowest since 2022. Here's what it means. 2 hours ago 8 Ripple's preliminary crypto asset provider license in Luxembourg upgraded to fully compliant 3 hours ago 9 Coinbase AI draws backlash after erroneously publishing World Cup result before kickoff 3 hours ago 10 FOMC minutes, SpaceX joins Nasdaq 100: Crypto Week Ahead 4 hours ago Latest Research Building the Zcash Machine: Tachyon and Quantum Readiness Building the Zcash Machine: Tachyon and Quantum Readiness Zcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold. By CoinDesk Research Jun 30, 2026 Commissioned by GenZcash Zcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold. Why it matters : Zcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold. View Full Report More From Markets Michael Saylor's Strategy dramatically ups pace of bitcoin sales, raising $216 million SpaceX's Nasdaq 100 inclusion comes with a historical warning Crypto bounces back from the brink as altcoin optimism returns despite pockets of weakness More From Bitcoin Bitmine added another $74 million in ether as Tom Lee bets on Clarity Act boost Michael Saylor's Strategy dramatically ups pace of bitcoin sales, raising $216 million Russia's largest bank plans crypto wallet launch as Moscow clears market path