Wall Street broker Benchmark remains Bullish on strategy (Mstr) despite the share’s recent matches, arguing that its Bitcoin-bound eternal preferred shares give it something that no other digital asset boxes can match: Permanent capital.
The broker confirmed his strategy -purchase rating and $ 705 price targets in the Thursday report. The stock was 2% lower in the early trade, about $ 324.
At an investor meeting that hosted the benchmark this week, performing chairman Michael Saylor outlined how these instruments strengthen the company’s strategy.
While other companies are running to replicate the strategy’s Playbook, the company’s 640,031 BTC finance ministry, more than twelve times the next largest business owner, remains an unmatched, analyst Mark Palmer said.
Its real edge, Palmer said, is in the structure of its eternal preferred shares. These remove refinancing risk tied to Bitcoin’s price fluctuations, giving the company a stable capital base without diluting common equity.
Saylor framed the strategy as a transformation of Bitcoin into the foundation of a new fixed income market, just as mortgage -backed securities transformed real estate, the report noted. Investors buy in: The STRC offer in July raised $ 2.52 billion, the largest US IPO this year.
Benchmark sees Bitcoin-bound fixed income that develops into a market of hundreds of billion dollars, with strategy as its architect.
The broker’s price target reflects the expected Bitcoin value, a 10x multiple on expected gains and the company’s software business prospects through 2026.
Read more: Strategy Q3 Bitcoin gains were $ 3.9 B; No weekly buyer for the first time since April
