Wall Street broker Benchmark remains bullish on Strategy (MSTR) despite the stock’s recent struggles, arguing that its bitcoin-linked perpetual preferred stock gives it something no other digital asset treasury can match: permanent capital.
The brokerage reaffirmed its strategic buy rating and $705 price target in Thursday’s report. The stock was down 2% in early trading, around $324.
At an investor meeting hosted by Benchmark this week, CEO Michael Saylor described how these instruments strengthen the company’s strategy.
While other companies rush to replicate the playbook, the company’s 640,031 BTC treasury, more than twelve times the next largest corporate holding, remains unrivaled, said analyst Mark Palmer.
Its real advantage, Palmer said, is in the structure of its perpetual preferred stock. These eliminate refinancing risk linked to bitcoin price swings, giving the company a stable capital base without diluting common equity.
Saylor framed the strategy as turning bitcoin into the foundation of a new fixed-income market, in the same way that mortgage-backed securities transformed real estate, the report noted. Investors are buying: STRC’s July IPO raised $2.52 billion, the largest U.S. IPO this year.
Benchmark sees bitcoin-linked fixed income evolving into a multi-hundred-billion-dollar market, with Strategy as its architect.
The broker’s price target reflects the projected value of bitcoin, a multiple of 10 times the company’s expected earnings and software business prospects through 2026.
Read more: The strategy’s third-quarter Bitcoin earnings were $3.9 billion; No weekly shopping for the first time since April
