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Strategy Shares Fall Nearly 10% After Q3, but Analysts See Preferred-Stock Fix Paving the Way for Bitcoin Buying

Strategy Shares Fall Nearly 10% After Q3, but Analysts See Preferred-Stock Fix Paving the Way for Bitcoin Buying

Strategy (MSTR) fell nearly 10% on Friday after its third-quarter results, trading down 8.7% at $129.90. The stock is down about 27% so far this year.

The company ended the quarter with $5.07 billion in dollar assets, including a $4.83 billion cash reserve. According to StoneX and TD Cowen, that reserve covers roughly 3.2 to 3.4 years of preferred dividends and debt interest. Strategy spent about $2 billion repurchasing STRC preferred stock, bringing it close to its $100 par value. Bitcoin per share fell 3.7% year to date.

Shareholders of STRC, STRF, STRK and STRD approved daily dividend accrual, effective November 1 for STRC and January 1 for the others.

Analysts argue the more stable preferred structure positions Strategy to resume bitcoin accumulation, although the change came at the expense of near-term bitcoin-per-share growth. StoneX reiterated its buy rating with a $435 price target, and TD Cowen kept its buy rating with a $260 target.

Strategy is one of the best-known corporate bitcoin buyers, so any restart would be closely watched.

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