MSTR Stock Forecast: Analyst Sees $185 Rally as STRC Preferred Stock Hits High

Strategy's STRC preferred stock has reached its highest price since June 1, sparking bullish forecasts for MSTR stock. Analysts believe that if STRC can regain its par value of $100 or trade above it, Strategy will gain access to a 'much larger preferred equity machine' and be able to raise more capital. This could lead to a rally in MSTR stock price, potentially reaching as high as $185.

The recent surge in STRC's price has been fueled by Strategy's buybacks of the preferred stock, which have totaled over $811 million since July. The company has also been selling MSTR shares and Bitcoin to fund these purchases. Despite this, Strategy's unrealized profit on its BTC holdings has shrunk to $1.3 billion due to the recent drop in Bitcoin price.

The analyst's prediction comes as other crypto stocks, including Coinbase (COIN) and Circle (CRCL), have posted slight gains following a surge in volatility caused by rising odds of a Federal Reserve interest rate hike at its upcoming meeting.