Investment Bank Cantor: Strategy's Restoration of STRC to Par Value Seen as Key to Restarting Bitcoin 'Capital Engine'

CoinFeed July 6 news, according to a CoinDesk report, U.S. listed company Strategy currently considers restoring its preferred stock STRC to $100 par value as a top priority, believing it is key to restarting the Bitcoin acquisition and financing model based on the preferred stock structure. Investment bank Cantor said that management will promote the preferred stock back to par value by increasing cash reserves used to pay STRC dividends, increasing the dividend coverage period, and repurchasing STRC when necessary. Strategy just announced the sale of about $216 million worth of Bitcoin to pay STRC dividends. Cantor expects that as STRC returns to par value and stabilizes, the company can re-issue capital at lower cost, promote MSTR common stock and subsequent additional issuance, and continue to execute the strategy of increasing Bitcoin holdings.