Preferred stock discount = financing capacity discount, Michael Saylor's leverage magic needs new tricks.

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)