Benchmark Affirms Strategy as Leading Bitcoin Proxy, Dismissing Solvency Fears
Wall Street broker Benchmark says fears about the solvency of bitcoin treasury company Strategy (MSTR) are overblown, calling the stock the “strongest asymmetric bet on bitcoin.”
In a report published Monday, analyst Mark Palmer noted that recent bitcoin price dips have reignited familiar concerns about Strategy’s balance sheet. Palmer emphasized that the company’s structure is designed to maximize bitcoin leverage, holding roughly 649,870 BTC (valued at $55.8 billion), alongside $8.2 billion in low-cost convertibles and $7.6 billion in perpetual preferreds. He described the company’s obligations as manageable and far more robust than critics suggest.
Benchmark also highlighted Strategy’s perpetual preferreds, which provide permanent capital with no refinancing cliff—a structural advantage other digital-asset treasury firms lack. The broker said bitcoin would need to fall below $12,700 and stay there—an 86% decline—for the company to face solvency risk, a scenario it sees as highly unlikely in today’s institution-driven market.
Palmer reiterated his buy rating on MSTR with a $705 target, based on a 2026 bitcoin price assumption of $225,000, noting that the recent pullback does not change this outlook. Shares were down 4.7% at $168.82, while bitcoin traded 6% lower at about $86,000 at publication time.
Amid volatility in the digital asset treasury sector, including ETF flow swings and liquidity stress, Benchmark sees Strategy as a standout: scalable, yield-generating, and structurally advantaged. The broker expects the company to lead a rebound as liquidity and regulatory clarity improve.
On Monday, Strategy also announced a $1.44 billion U.S. dollar reserve, funded primarily through last week’s sale of common stock. The reserve is intended to cover at least 12 months of dividends, with plans for further expansion.
