Wall Avenue dealer Benchmark stays bullish on Strategy (MSTR) regardless of the inventory’s current struggles, arguing that its bitcoin-linked perpetual most popular shares give it one thing no different digital asset treasury can match: everlasting capital.
The dealer reaffirmed its Strategy purchase ranking and $705 value goal within the Thursday report. The inventory was 2% decrease in early buying and selling, round $324.
In an investor assembly hosted by Benchmark this week, Government Chairman Michael Saylor outlined how these devices strengthen the corporate’s technique.
Whereas different corporations race to duplicate Strategy’s playbook, the corporate’s 640,031 BTC treasury, greater than twelve occasions the next-largest company holder, stays unmatched, analyst Mark Palmer mentioned.
Its actual edge, Palmer mentioned, is within the construction of its perpetual most popular shares. These take away refinancing threat tied to bitcoin’s value swings, giving the corporate a steady capital base with out diluting frequent fairness.
Saylor framed the technique as turning bitcoin into the muse for a brand new mounted revenue market, a lot as mortgage-backed securities remodeled actual property, the report famous. Buyers are shopping for in: the STRC providing in July raised $2.52 billion, the most important U.S. IPO this yr.
Benchmark sees bitcoin-linked mounted revenue evolving right into a multi-hundred-billion-dollar market, with Strategy as its architect.
The dealer’s value goal displays projected bitcoin worth, a 10x a number of on anticipated good points, and the corporate’s software program enterprise outlook by 2026.
Learn extra: Strategy Q3 Bitcoin Positive factors Have been $3.9B; No Weekly Buys for First Time Since April
