Strategy, Inc.'s identity has long centered on converting as many dollars as possible into bitcoin. Analysts are now endorsing the company’s evolving approach, which includes holding more cash, arguing that a larger dollar reserve is essential to its long-term aim of buying more BTC.
"Although in the past we've had 100% allocation to BTC, I don't think it'll be 100% in the future. I think it'll be a mix," Strategy Executive Chairman Michael Saylor said Thursday on the company's earnings call. "Maybe the best way to buy the most bitcoin is not to buy the most bitcoin."
TD Cowen and Benchmark reiterated their buy ratings on Strategy (MSTR) following the company's second-quarter earnings call, noting that returning its STRC preferred stock to par has become management's central objective.
TD Cowen analyst Lance Vitanza wrote that the most notable takeaway from the call was the intensity of management's focus on STRC. Executives repeatedly described returning STRC to par as a core objective, citing growing institutional adoption despite the security's recent dislocation.
Benchmark's Mark Palmer reached the same read, noting that Saylor and his team devoted the bulk of the 90-minute webinar to a single goal centered on restoring STRC to its $99 to $100 range so it can again serve as the primary engine for raising capital to buy bitcoin (BTC).
