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TD Cowen and Benchmark both reiterated buy ratings on Strategy after its Q2 earnings call, telling clients that returning the STRC preferred stock to par is now management's primary goal. The shift signals a clear pivot from CEO Michael Saylor's long-standing "100% bitcoin" treasury posture, at least tactically.
The two firms diverged on price after Strategy posted an $8.2 billion loss and paused bitcoin buying for a fifth consecutive week. The pause marks the longest stretch of inactivity from the company that turned corporate treasury allocation into a sector-defining trade since 2020, and the cash buildup is being read as a defensive move to defend STRC's $100 par value rather than a retreat from the bitcoin thesis.
Why it matters
The par-restore mission is a window into how Saylor is recalibrating the playbook. With STRC trading below par and preferred holders increasingly price-sensitive, raising fresh BTC at the wrong moment risks widening the discount. Sitting on cash lets Strategy defend the preferred while still preserving the option to resume accumulation on its own terms. The two-analyst split underscores that this is no longer a one-direction bet: the corporate-treasury trade now has a debt-management component that bulls and bears are pricing differently.
Market impact
For the broader market, the read is mixed. The pause breaks the reflexive "MSTR buys BTC every Monday" signal that other treasury imitators had been tracking, and that predictability contributed to the perception of a steady bid under the spot market. A return to active buying would likely restore that flow expectation. Until then, the STRC par defense is the more important near-term variable for both $MSTR equity and $BTC spot sentiment.
Frequently asked questions
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Why did Strategy pause bitcoin buying for five weeks?
Strategy paused BTC purchases for a fifth consecutive week while prioritizing returning its STRC preferred stock to par. Analysts read the cash buildup as a defensive move to defend the preferred's $100 price rather than a retreat from the bitcoin thesis.
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What was Strategy's Q2 loss and how did analysts react?
Strategy posted an $8.2 billion loss in Q2. TD Cowen and Benchmark both maintained buy ratings, but the two firms split on price after the results and the extended buying pause.
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What is the STRC preferred stock and why does par matter?
STRC is Strategy's preferred stock offering, which had been trading below its $100 par value. Returning it to par is now management's stated primary goal, because preferred holders are price-sensitive and a wider discount raises the cost of capital.
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Is Saylor abandoning the '100% bitcoin' treasury strategy?
Analysts frame the shift as tactical, not a full retreat. Saylor is preserving the option to resume BTC accumulation on his own terms, with the cash buildup aimed at defending STRC rather than writing down the bitcoin thesis.
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How does the Strategy pause affect the broader bitcoin market?
The pause breaks the reflexive weekly MSTR bid that other corporate treasury imitators had been tracking. Until buying resumes, STRC's path back to par is the more important near-term variable for both MSTR equity and BTC spot sentiment.
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