After a meeting with Michael Saylor, Executive Chairman of Strategy, Cantor stated that the most important task for management today is to return the priority share of the SRC price to face value. This step is not only about balance sheet stability, but also about whether companies can restore the Bitcoin growth rate driven by capital market finance.
The short-term focus is on currency and provisions
Before and after the release of the report, Strategy had just announced the sale of $216 million bitcoin, which would be used to cover STRC dividends. According to Cantor, this indicates that management is giving priority to safeguarding the cash support capacity of STRC and is trying to gradually repair the market pricing of this priority share.
The bank anticipates that Strategy will then take frequent steps to increase the cash reserve until the STRC returns to the face value. According to the analyst, the dividends cover period has been increased from approximately 10 months to 18 months, the first step in the rehabilitation process.
Rebooting the financing engine depends on the STRC
Cantor sees STRC as an important link in the operation of Strategy capital. The judgement is that, as long as this priority stock is restored to nominal value, the company is better placed to restart the relevant financing arrangements and continue to support the Bitcoin allocation through external capital.
At the same time, the report diluted the market ' s concerns about the pressure on the maturity of reversible debt. According to Cantor, before the node of large debt service, Strategy could either restore its capacity to finance at the centre of STRC or opt for refinancing to deal with maturities.
Wall Street's perception of the currency policy is divided.
However, Strategy recently allowed the selective sale of bitcoin to pay for preferential dividends, which also triggered different voices. In its report last week, Chase Morgan stated that this practice presented avoidable two-way risks that could increase market uncertainty and volatility.
According to the most recent stock price performance, on Monday, STRC made an early statement of $8.779, bitcoin fluctuated around $6.18 million, and Strategy's share price fell by 3.4 per cent to $9734. The current focus of the market remains on the ability of companies to restore their financing capacity and stabilize their Bitcoin hold strategy while maintaining dividends payments.