Strategy directed substantially more capital toward buying back its Stretch preferred stock than toward purchasing Bitcoin, a move StoneX Senior Equity Research Analyst Mark Palmer says is closely tied to the company’s fundraising structure and balance-sheet strategy.
According to Bitcoin Magazine, Strategy spent $176 million on Stretch buybacks compared with $29 million on Bitcoin purchases. The discussion examined whether that allocation was appropriate for MSTR shareholders, while focusing on why STRC is considered an important part of Strategy’s efforts to raise capital.
Why the STRC buybacks matter
STRC is Strategy’s Stretch preferred stock. Preferred shares generally sit ahead of common stock in a company’s capital structure and typically carry a specified dividend. In Strategy’s case, Palmer linked the security’s importance to the company’s ability to raise funds.
The analysis also highlighted Strategy’s $4.9 billion U.S. dollar reserve. That cash reserve was presented as a factor supporting STRC’s progress back toward its par value, or the stated value at which a preferred security is issued. The discussion did not suggest that Strategy would simply increase the dividend rate to support the security. Instead, it addressed why the company is not expected to take that approach.
Palmer also discussed STRC’s daily dividends and the volatility that can occur around ex-dividend dates, when a security begins trading without the right to receive the next dividend. The conversation covered the preferred stock’s sell-off in June and the role of institutional investors in that period.
Funding structure and pressure points
The interview considered where stress in a Bitcoin-treasury company’s balance sheet may appear first. It also compared perpetual preferred shares with convertible notes, another form of financing that can combine debt characteristics with the potential for conversion into equity.
The broader discussion included Strive’s approach to perpetual preferred securities, U.S. dollar cash, the repayment of convertible notes and Metaplanet’s expansion push in the United States. These comparisons placed Strategy’s financing choices within a wider discussion of how companies holding Bitcoin on their balance sheets fund operations and manage obligations.
StoneX has cut its MSTR price target to $435, and Palmer explained the reasoning behind that revision during the discussion. The target concerns Strategy’s common stock and is separate from the analysis of STRC’s path toward par. No investment recommendation was made in the source material.
Moneyiar market picture
Moneyiar data at 10:49 a.m. on October 7, 2026, showed Bitcoin at $83,692.61, down 2.88% over 24 hours and 0.21% over seven days. Solana was $117.54, down 2.36% in 24 hours and 1.80% over seven days, according to Moneyiar data at 10:48 a.m.
Plasma traded at $0.08653, down 6.46% over 24 hours and 11.03% over seven days. Nexus stood at $0.0000008089, with a 24-hour decline of 0.72% and a seven-day decline of 2.03%, based on Moneyiar data at 10:48–10:49 a.m.
