STRATEGY CONDUCTS $25M STRC STOCK BUYBACK: FILING https://t.co/Da0M9Qzc8Q
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Strategy executives: STRC is gradually recovering, targeting a return to the $99-$100 range.
According to Foresight News , Chaitanya Jain, Head of Investor Relations at Strategy, tweeted that after a brief period of decoupling, STRC is gradually recovering, and the company's goal is to maintain its long-term trading price in the $99-$100 range. He stated that the company has several tools available to achieve this goal, including a variable dividend yield, continuously growing dollar reserves, an improving Bitcoin rating, convertible bond redemptions, stock buybacks, and ongoing product upgrades.
Cryptocurrency stocks fell in pre-market trading; STRATEGY down 4.1%.
According to data from Odaily Odaily, cryptocurrency stocks fell in pre-market trading, following Bitcoin's more than 2% decline. COINBASE GLOBAL fell 3.5%, BIT DIGITAL declined 3.6%, and STRATEGY fell 4.1%. RIOT PLATFORMS fell 4.4%, HUT 8 CORP fell 4.9%, and MARA HOLDINGS fell 3.5%.
Opinion: Strategy's sale of BTC helps restore market confidence in STRC and reduces Bitcoin's short-term tail risk.
According to Mars Finance, on July 6th, Zach Pandl, Head of Research at Grayscale, stated that in his view, Strategy's sale of BTC was a necessary step to restore market confidence in STRC and its overall structure. Strategy's partial BTC sale last week further reduced the short-term tail risk of Bitcoin, and STRC is expected to continue its strong performance. Previously, it was reported that Strategy sold 3,588 Bitcoins last week, raising $216 million to pay dividends on its digital credit securities. As of July 5th, the company's Bitcoin reserves had decreased to 843,775, while it held $2.55 billion in US dollar reserves.
Strategy, holding 847,363 BTC, was advised to generate income through lending or options rather than selling BTC.
According to a research report published on July 3rd by Alex Thorn, Head of Research at Odaily Digital, Strategy should explore generating revenue from its BTC holdings rather than directly selling physical BTC. Strategy previously launched a five-part Digital Credit Capital Framework, including a dollar reserve policy, a revised STRC dividend policy, a $1 billion preferred stock buyback mandate, a $1 billion MSTR stock buyback mandate, and a BTC monetization plan, increasing the STRC annual dividend yield from 11.5% to 12%. Strategy currently holds 847,363 BTC and has raised over $1 billion through common stock sales, extending its cash coverage period to approximately 17 months. Thorn stated that Strategy could use a small portion of its BTC for conservative lending or options strategies, generating revenue while retaining most of its upside exposure. Strategy still faces preferred stock obligations and $6.7 billion in outstanding convertible debt maturing in 2027 and 2028. (Bitcoin.com News)
STRC rebounded and broke through $90, rising 2.42% intraday.
According to Foresight News , Bitget data shows that Strategy Preferred Stock (STRC) has rebounded above $90, currently trading at $90.01, up 2.42% during the session.
Cantor Fitzgerald: Bullish on the correlation between MSTR and BTC for recovery; STRC is key to restarting the capital engine.
According to Odaily Odaily, Wall Street investment bank Cantor Fitzgerald stated that the key to Strategy's ability to restart its capital expansion cycle lies in restoring its preferred stock STRC to a par value of $100. The bank pointed out that repairing the STRC price is a core prerequisite for restarting the company's Bitcoin accumulation "capital engine" and will help stabilize its overall capital structure. Following a meeting with Executive Chairman Michael Saylor, Cantor Fitzgerald expressed greater confidence in management's plans to stabilize the balance sheet and restore financing capabilities. Currently, STRC is trading at approximately $87.79, Strategy's stock price is down 3.4% to $97.34, and Bitcoin is priced around $61,800. Cantor believes that STRC is a fundamental tool in Strategy's financing system, and its restoration will benefit both preferred and common stock holders, further enhancing the company's ability to continue accumulating Bitcoin. Strategy has already raised approximately $216 million in Bitcoin through the sale of preferred stock dividends and expects to continue increasing its cash reserves to support dividend stability. (CoinDesk)