Cantor analyst Brett Knoblauch said that the recovery of Strategy depends on whether it can bring its preferred stock STRC back to around $100 par value. Cantor believes that if STRC remains below par value, it will limit Strategy's ability to raise funds by issuing preferred stock to buy BTC and weaken the positive cycle of its capital structure. Previously, Strategy had built a reserve of approximately $2.55B and authorized up to $1.25B in BTC sale quotas to support dividends, buybacks, or liquidity needs. (CoinDesk)

BTC1.62%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 5
  • 2
  • Share
Comment
Add a comment
Add a comment
OpcodePoet
· 6h ago
In the end, it still depends on the market's confidence in STRC. If confidence collapses, financing becomes impossible, and the rhythm of buying coins is disrupted.
View OriginalReply0
HypeVaccinated
· 6h ago
The 1.25B selling limit is the trump card, but how will the market react if we really sell BTC on a large scale?
View OriginalReply0
ThereAreCatsInTheContract.
· 6h ago
Cantor's analysis is quite on point; once the positive cycle of capital structure is broken, the logic behind Strategy's BTC accumulation weakens.
View OriginalReply0
Stop-LossLineForTheEveningGlow
· 6h ago
If STRC cannot return to par value, the financing cycle will indeed be stuck.
View OriginalReply0
DeltaSmile
· 6h ago
2.55 billion reserve + 1.25 billion sale quota, this safety margin looks okay, but the preferred stock discount is a worry.
View OriginalReply0
  • Pinned