Samson Mow Predicts STRC Will Rebound Alongside SATA Recovery

Samson Mow Predicts STRC Will Rebound Alongside SATA Recovery

In a recent analysis, Jan3 CEO Samson Mow highlighted the positive shift in Strive’s SATA preferred shares, which have seen a recovery of nearly 16% from their June lows, now trading at around $97. Mow believes this upward momentum could assist Strategy’s STRC in returning to its indicated $100 par value.

Current Market Performance

Strive’s SATA has climbed from a low of $83.30, significantly closing the gap to its target level. While SATA has nearly erased its past declines, STRC continues to trade approximately 13% below par, despite heightened interest from major U.S. exchange-traded funds (ETFs). According to Mow, the industry’s recovery is bolstered by moves from Bitcoin treasury companies, which are working to enhance their balance sheets.

Investor Sentiment and Recovery Predictions

According to Mow, the factors behind SATA’s resurgence could also restore confidence in STRC. He stated, “I think every action that Strategy has undertaken to strengthen their balance sheet… is also working.” He expects a harmonious relationship between the two securities as investors reassess the financial reliability of Bitcoin-linked preferred shares.

The Role of Institutional Demand

Mow pointed out that both SATA and STRC were introduced to raise capital for Bitcoin acquisitions without diluting common stock. Despite STRC still trading below par, it has garnered attention, becoming the largest holding in three major U.S. preferred stock ETFs, with an impressive $756 million in assets collectively held. Strategy can deploy funds raised through these preferred shares to enhance its Bitcoin purchases.

Outlook for Preferred Shares

Mow maintains a positive outlook for STRC, asserting that SATA’s recovery could signal enhanced demand for preferred shares tied to Bitcoin. This improvement, he believes, could narrow STRC’s market discount and ultimately create a more stable funding path for Strategy as it continues to manage its substantial Bitcoin holdings.