Benchmark Analyst Reaffirms Buy on Strategy, Cites Flexibility and Bitcoin Upside
Benchmark analyst Mark Palmer has reiterated his buy rating on Strategy (MSTR) with a $705 price target, more than double its current $332 level, arguing that recent criticism of Executive Chairman Michael Saylor’s capital strategy is misplaced.
Retail investors have accused Saylor of abandoning discipline after Strategy adjusted its policy on Aug. 18, allowing equity issuance even when its premium to bitcoin net asset value (mNAV) falls below 2.5x. But Palmer contends that the change enhances flexibility, enabling the company to keep accumulating bitcoin during periods of market weakness.
“Rather than mismanagement, the shift underscores Strategy’s ability to adapt its balance sheet,” Palmer wrote. He pointed to the firm’s record of financial engineering — from refinancing debt and issuing convertibles to pioneering perpetual preferred stock that has attracted hedge funds and volatility traders. These products, he said, validate Strategy’s approach while expanding its investor base.
Looking ahead, Palmer highlighted the potential for S&P 500 inclusion, which could funnel billions of dollars of passive inflows into the stock and place Strategy alongside Coinbase and Block as one of the few large-cap equities offering direct crypto exposure.
Despite recent volatility and a compressing premium to bitcoin, Palmer maintains that Strategy remains “the most liquid, scalable vehicle for investors seeking bitcoin upside without mining risk.”
