Strategy (MSTR) Stock: CEO Buys STRC Preferred Near Lows as New Framework Takes Shape
TLDR
- CEO Phong Le bought 11,000 STRC preferred stock units for ~$999K near all-time lows around $90.66–$90.87 per share
- BTIG kept its Buy rating on MSTR but trimmed price target from $350 to $250, citing Bitcoin’s 28% price decline
- Strategy’s new Digital Credit Capital Framework raised over $1 billion, covering 17 months of preferred dividends in cash
- MSTR closed up 7.43% on Tuesday and rose another 6.37% in early pre-market Wednesday; stock was up 11.63% at midday Wednesday
- Analyst consensus remains Strong Buy with an average price target of ~$291–$363, implying significant upside from current levels
Strategy (MSTR) CEO Phong Le made a direct bet on his own company last week, purchasing 11,000 units of the company’s STRC preferred stock for roughly $999,000 near record lows.
Strategy Inc, MSTR
The purchase was made at prices between $90.66 and $90.87 per share. STRC had hit a low of $71.25 on June 26 and is down 10.84% year-to-date.
It’s a move that markets noticed. MSTR stock was up 11.63% to $97.03 at midday Wednesday, after closing up 7.43% the previous session and jumping another 6.37% in pre-market.
The company has had a rough stretch. MSTR hit a 52-week high of $457.22 last July and recently touched a low of $81.81 on June 26 — a drop of 78.7% from its peak. The stock is down 74.8% over the past year and off 36.76% year-to-date.
Much of that pressure came from Bitcoin weakness and investor concern about the company’s capital structure, particularly around dilution and its preferred stock strategy.
New Capital Framework Calms Investor Nerves
Strategy responded with a new Digital Credit Capital Framework, announced this week. The plan commits the company to holding enough cash to cover at least 12 months of interest and dividend costs, and adds a share buyback mechanism to help MSTR trade closer to its net asset value.
To fund this, Strategy raised over $1 billion by selling common stock last week, building a U.S. dollar reserve that covers 17 months of preferred dividends.
BTIG analysts Andrew Harte and Brendan Greaney responded positively. They kept their Buy rating on MSTR while lowering their price target from $350 to $250, adjusting for Bitcoin’s 28% price decline since Q1.
In their note dated July 1, the analysts wrote that they “believe MSTR’s capital structure will enable it to outperform BTC as prices recover.”
They called the shift from a simple capital-issuance story to active balance sheet management a “highly positive near-term spark” for the stock.
Q1 2026 Results: Software Revenue Up, Bitcoin Losses Dominate
Strategy reported Q1 2026 results on May 5. Revenue came in at $124.3 million, up 11.9% year-over-year. Gross profit rose to $83.4 million from $77.1 million a year earlier.
But the headline number was a net loss of $12.54 billion, driven almost entirely by a $14.5 billion unrealized loss on its Bitcoin holdings.
As of early May, Strategy held 818,334 Bitcoin — up 22% year-to-date — with a reported BTC Yield of 9.4% YTD. The company raised $11.7 billion in capital year-to-date.
STRC raised $5.6 billion for the company, up 189% year-to-date, with $692.5 million in cumulative dividends declared and paid.
Cantor Fitzgerald holds an Overweight rating with a $212 price target. Benchmark has a Buy rating and a $570 target. The Street-high target sits at $645.
Across 18 analysts, MSTR carries a Strong Buy consensus — 15 Strong Buy, one Moderate Buy, one Hold, one Strong Sell — with an average price target of $363.62.
The post Strategy (MSTR) Stock: CEO Buys STRC Preferred Near Lows as New Framework Takes Shape appeared first on CoinCentral.
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