Cantor Fitzgerald Highlights Importance of STRC for Strategy's Recovery

On July 6, 2026, Cantor Fitzgerald released a report stating that bringing Strategy's preferred stock, STRC, back to a value of $100 is vital for the company's recovery and for reactivating its bitcoin acquisition strategy. The financial institution indicates that Strategy's executive team will likely engage in various actions to stabilize cash reserves and support both preferred and common shareholders.

Currently, STRC trades at approximately $87.79, while the price of bitcoin stands around $61,800, and shares of Strategy's common stock (MSTR) are down about 3.4%, priced at $97.34. Recently, Strategy announced the sale of $216 million worth of bitcoin, which will be used to fund expected dividends for STRC. Management’s ability to restore STRC to par is crucial, as it enhances the company's capacity to acquire more bitcoin and strengthens its overall capital structure.

Cantor's analysts indicate that confidence in management’s plan for balance sheet stabilization has increased following discussions with Executive Chairman Michael Saylor. They expect ongoing actions to bolster cash reserves and reinforce dividends for STRC until its value returns to par. The report suggests that "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." The report highlights a recent improvement in cash reserves, claiming an increase in coverage for STRC dividends from about 10 months to around 18 months marks an important step in this process.

Management may also engage in buybacks if necessary, although enhancing cash reserves is viewed as the primary strategy. Furthermore, concerns surrounding the upcoming convertible debt maturities are dismissed in the report, suggesting that the company will either stabilize its capital engine before the repayment deadlines or refinance the debts effectively. Since STRC is foundational for Strategy's funding model, the report posits that its recovery should also positively influence MSTR shares, creating opportunities for further equity issuance to finance additional bitcoin purchases.

In a contrasting viewpoint, a report from JPMorgan indicated that Strategy's selective bitcoin sales policy, implemented to support preferred dividends, introduces added two-way risks that could amplify market volatility. This highlights ongoing concerns about the broader implications of such strategies on cryptocurrency markets.