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Benchmark, Adam Back defend Strategy and STRC as common stock sale boosts cash

Benchmark, Adam Back defend Strategy and STRC as common stock sale boosts cash

Benchmark maintained its buy rating and $570 target, while Strategy raised $335.5 million through MSTR sales, added $300 million to cash reserves, and bought 520 Bitcoin as weak STRC pricing constrained preferred-share funding.

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Fact Check
All caller-supplied sources and the original X post by The Bitcoin Historian (@pete_rizzo_), which the three crypto news outlets cite as their source, consistently report that Adam Back called bearish views on Strategy and STRC unfounded. The BlockBeats, PANews, and Odaily reports each state Back argued selling Bitcoin to pay dividends does not alter the reserve strategy but demonstrates Bitcoin's viability for investor returns and debt reduction, framing it as a new corporate finance model. The WuBlockchain post adds the Bloomberg context (sale of 32 BTC to pay preferred dividends). These align directly with the claim that Back said bearish views are unfounded and that the company uses Bitcoin to support shareholder returns while keeping its reserve approach intact.
Summary

Benchmark Equity Research reaffirmed its buy rating on Strategy and kept its $570 price target, while Adam Back argued bearish commentary on Strategy and its STRC preferred shares was not supported by the facts. At the same time, Strategy sold about 2.71 million MSTR shares between June 15 and June 21, raised $335.5 million, directed $300 million to its U.S. dollar reserve, and used $34.9 million to buy 520 Bitcoin, lifting holdings to 847,363 BTC. The move increased the cash reserve to about $1.4 billion and reflected a shift away from preferred-share issuance after STRC fell well below its $100 stated value, making that market a less efficient funding source. Benchmark said the selloff looked like repricing rather than structural weakness, citing Strategy’s bitcoin holdings, liquidity structure, variable dividend, and cash position, while the smaller Bitcoin purchase suggested STRC stress could slow one of the market’s largest institutional sources of Bitcoin demand.

Terms & Concepts
  • preferred shares: A class of stock with priority dividends or payouts over common stock.
  • ATM program: An at-the-market share sale program that lets a company sell stock gradually into the open market.
  • BTC Yield: A company metric that tracks changes in Bitcoin holdings relative to diluted shares outstanding.