CoinDesk
Cantor told clients Monday that Strategy's near-term recovery hinges on restoring its STRC preferred stock to par at $100, a level the bank described as the foundation of the company's bitcoin acquisition model rather than a peripheral funding line. After meeting with Executive Chairman Michael Saylor, lead analyst Ramsey El-Assal said Cantor 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 hovered near $61,800, and MSTR slid 3.4% to $97.34. Strategy also disclosed the sale of $216 million of bitcoin, with proceeds earmarked for STRC dividends. Cantor framed that move as the first concrete step in a multi-stage defense of the preferred, noting dividend coverage has already moved from roughly 10 to 18 months of cash on hand.
Why it matters
Cantor's argument reframes STRC as the strategic asset in Strategy's capital stack. Rather than viewing preferred holders, common shareholders and bitcoin accumulators as competing interests, the bank argued the preferred is what unlocks the rest: until STRC trades at par, MSTR loses access to cheaper capital and the broader buying program loses momentum.
Management is expected to keep increasing cash reserves backing STRC dividends, with buybacks available if needed. Cantor 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. The contrast with JPMorgan is sharp: JPMorgan warned last week that Strategy's new policy of selective bitcoin sales to fund preferred dividends creates avoidable two-way risk for crypto markets. Cantor reads the same policy as a deliberate stabilization tool.
Market impact
The trade Cantor laid out is dual-track. Buy STRC and capture both the $12 spread back to par plus the instrument's substantial yield, or buy MSTR common on the bet that a firmer preferred restores access to lower-cost equity issuance and reignites bitcoin accumulation.
Frequently asked questions
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Why does Cantor say STRC needs to return to par?
Cantor argues STRC trading back to its $100 redemption price is what unlocks cheaper capital and restarts Strategy's bitcoin acquisition engine. Until that happens, the preferred remains the bottleneck in the capital stack.
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What did Strategy just do with bitcoin?
Strategy announced the sale of $216 million of bitcoin on Monday, with the proceeds earmarked to fund STRC preferred dividends. Cantor read the move as the first concrete step in defending the preferred.
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Where were STRC, MSTR and BTC trading on Monday?
In early Monday trading, STRC changed hands at $87.79, bitcoin hovered near $61,800, and MSTR was down 3.4% at $97.34, well below STRC's $100 par.
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How does Cantor's view differ from JPMorgan's?
Cantor frames Strategy's selective bitcoin sales to fund preferred dividends as a deliberate stabilization tool. JPMorgan warned last week that the same policy creates avoidable two-way risk and increases market volatility.
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What does Cantor expect management to do next?
Cantor expects Strategy to keep increasing cash reserves backing STRC dividends, with buybacks available if needed, until the preferred trades back at par. The bank also dismissed concerns over upcoming convertible debt maturities.
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