Odaily Planet Daily reports that analysts from StoneX and TD Cowen believe that the stabilization of Strategy’s preferred stock financing structure and improved liquidity have created favorable conditions for the company to resume Bitcoin purchases and increase its Bitcoin holdings per share. Both institutions maintain a “Buy” rating, with target prices of $435 and $260, respectively.
As of the end of the third quarter, Strategy held $5.07 billion in U.S. dollar assets, including $4.83 billion in cash reserves, sufficient to cover approximately 3.2 to 3.4 years of preferred stock dividends and debt interest. Strategy also spent approximately $2 billion to repurchase STRC preferred shares, helping to lift their price back toward the $100 par value. However, due to funds being prioritized for replenishing cash reserves and supporting preferred shares rather than increasing Bitcoin holdings, Strategy’s Bitcoin holdings per share decreased by 3.7% year-to-date.
In addition, shareholders of the STRC, STRF, STRK, and STRD preferred shares have approved daily accrual of dividends: STRC effective November 1, and the other three classes effective January 1 of next year. Management stated that this move aims to reduce volatility, improve liquidity, and expand demand. TD Cowen believes that broader distribution channels and improved liquidity could ultimately enhance the efficiency of Strategy’s issuance of "digital credit" products.