Saylor's Par-ty Trick: Cantor Bets STRC at $100 Is the Key to MSTR's Bitcoin Comeback 🎯

Cantor told clients Monday that restoring Strategy's STRC preferred stock to its $100 par value is the company's top priority and the linchpin for restarting its bitcoin acquisition strategy. After meeting with Executive Chairman Michael Saylor, the Wall Street bank said it came away more confident in management's plan to stabilize the balance sheet and revive capital raising through the preferred instrument.

In early Monday trading, STRC changed hands at $87.79, bitcoin was near $61,800, and Strategy's MSTR common stock was down 3.4% at $97.34. Just minutes before the note was published, Strategy announced the sale of $216 million of bitcoin, with proceeds earmarked to fund STRC dividends.

Analysts led by Ramsey El-Assal framed STRC as the foundation of Strategy's funding model rather than a competing claim against common shareholders or bitcoin holdings. "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 note said.

Cantor expects Strategy to keep increasing cash reserves backing STRC dividends until the preferred trades back at par, calling the recent move from roughly 10 to 18 months of dividend coverage the first step. Management could take additional actions, including buybacks if necessary, but cash reserves are viewed as the primary tool.

The bank also pushed back on concerns about 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. Wall Street bank JPMorgan said in a separate report last week that Strategy's new policy allowing broader bitcoin sales gives management more flexibility heading into those obligations, and Cantor agreed that access to lower-cost capital through STRC remains the path back to MSTR's broader bitcoin accumulation strategy.