TD Cowen: Semi-monthly STRC payouts could aid MSTR, ASST

TD Cowen analysts Lance Vitanza and Jonnathan Navarrete wrote that Strategy’s proposal to change STRC preferred-share dividends from monthly to semi-monthly could improve liquidity, reduce reinvestment lag and free capital to support additional bitcoin purchases for holders of Strategy common stock (MSTR) and bitcoin-treasury peer Strive (ASST). Voting on the proposal is open through June 8; if approved, semi-monthly payments would begin on July 15.

Strategy argued the change could “lead to reduced reinvestment lag, enhanced liquidity, market efficiency, and increased price stability.” TD Cowen described STRC as a “more stable price option” and a funding channel for further bitcoin accumulation. The analysts framed STRC as a self-funded perpetual preferred instrument and wrote that the structure “frees up capital” for bitcoin buying without heavier reliance on traditional financing.

TD Cowen raised its price target for Strategy’s common stock, MSTR, to $385 from $350 earlier this month. MSTR shares are trading near $168, down more than 44% over the past six months.

The analysts applied the same reasoning to Strive, calling the firm “both a direct and indirect beneficiary” of scaled STRC issuance. They wrote that higher inflows tied to STRC-like instruments could lift Strive’s net asset value premium and give the firm more flexibility to generate higher bitcoin yields.

Strive has issued a preferred instrument, SATA, with a 12.75% dividend that has been used to buy bitcoin. The firm also purchased $50 million of Strategy’s STRC shares.

TD Cowen initiated coverage of Strive (NASDAQ: ASST) this month with a buy rating and a $26 price target, which the firm reiterated. ASST shares trade near $15.70, up more than 50% in the past 30 days.

The analysts wrote that a potential feedback loop could form: issuance of STRC-style preferred stock can fund more bitcoin purchases, attract investor demand and improve access to capital for firms using similar treasury models. That dynamic could support liquidity and price stability for the preferred instruments and indirectly affect common shares.