Benchmark Stays Bullish on MicroStrategy as Bitcoin-Linked Preferred Shares Provide Permanent Capital
Wall Street broker Benchmark reaffirmed its buy rating and $705 price target on MicroStrategy (MSTR), highlighting the company’s bitcoin-linked perpetual preferred shares as a key differentiator that provides permanent capital unlike any other corporate digital asset treasury.
Despite the stock trading 2% lower at $324, Benchmark remains confident in MicroStrategy’s strategy. Executive Chairman Michael Saylor explained in a recent investor meeting that these instruments remove refinancing risk associated with bitcoin price fluctuations, giving the company a stable capital base without diluting common equity.
Analyst Mark Palmer noted that MicroStrategy’s 640,031 BTC treasury, over twelve times larger than the next-largest corporate holder, remains unmatched, even as other firms try to replicate its approach.
Saylor framed the strategy as creating a bitcoin-backed fixed income market, similar to how mortgage-backed securities reshaped real estate. Investor demand is strong: the STRC offering in July raised $2.52 billion, the largest U.S. IPO this year.
Benchmark sees the bitcoin-linked fixed income market evolving into a multi-hundred-billion-dollar industry, with MicroStrategy at its forefront. The price target incorporates projected bitcoin value, a 10x multiple on expected gains, and the company’s software business outlook through 2026.
