Former Goldman Sachs credit investment specialist Khing Oei has stated that Strategy’s preferred stock, trading under the ticker STRC, is undervalued by approximately 13%. Oei, who analyzes the security as a bond rather than a perpetual dividend instrument, estimates its fair value at around $96 per share, while it currently trades near $85. He also projects that the dividend remains sustainable for roughly 29 years even if Bitcoin’s price stays flat.
The analysis arrives as Strategy, formerly MicroStrategy, continues to pause its aggressive Bitcoin accumulation. Co-founder Michael Saylor announced that the company raised its USD reserve by $225 million in the past week, bringing the total to over $3.2 billion. This cash pile, built partly through recent BTC sales including a 3,500 BTC transaction for $216 million, is designed to cover monthly dividend payments for more than two years and provide liquidity under its new Digital Credit Capital Framework.
The combined developments highlight a cautious repositioning: while the company still holds 843,775 BTC, the shift toward a stronger dollar buffer and the bond-like valuation of STRC offer income-focused investors a traditional analysis framework. Oei’s background adds weight to the view that the market may be over-penalizing the preferred shares for their Bitcoin exposure.
