The broker said fears over Strategy’s solvency are misplaced and the stock remains the strongest asymmetric bet on bitcoin.
The broker said fears over Strategy’s solvency are misplaced and the stock remains the strongest asymmetric bet on bitcoin.Benchmark said Strategy’s share-price pullback has revived an unfounded doom narrative that ignores its bitcoin reserves and capital structure.
The broker argued that MSTR’s perpetual preferred stock and low-cost convertibles give it unmatched bitcoin leverage with limited solvency risk.price pullback has revived the usual alarms about the survival of bitcoin treasury company Strategy , concerns it dismisses as noise that surfaces whenever the cryptocurrency falls. In a report published Monday, analyst Mark Palmer argued that critics are confusing short-term moves with genuine solvency risk, overlooking a balance sheet built to maximize bitcoin leverage. With about 649,870 BTC against $8.2 billion in ultra-low-cost convertibles and $7.6 billion in perpetual preferreds, Palmer said that Strategy’s obligations are manageable and its structure far sturdier than detractors claim. Access to perpetual preferreds, permanent capital with no refinancing cliff, is a core competitive edge that other digital-asset-treasury firms can’t match, the report said. On the recurring question of distress levels, Benchmark said bitcoin would need to fall below roughly $12,700 and stay there, an 86% drop it views as highly unlikely in today’s institution-driven market. Palmer reiterated his buy rating on the shares and $705 target, anchored to a 2026 bitcoin assumption of $225,000, and said the recent pullback doesn’t alter that view. The shares were 4.7% lower in early trading, at $168.82. Bitcoin was 6% lower at publication time, around $86,000. With the digital asset treasury sector navigating volatility, exchange-traded fund flow chop and liquidity stress, the broker sees Strategy as the clear standout — scalable, yield-generating and structurally advantaged — and said it expects the company to lead a rebound as liquidity and regulatory clarity improve. The reserve was funded via the sales last week of common stock, and Strategy initially intends to keep enough money in the reserve to fund at least 12 months of dividends,AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M , followed by the SafeToken Protocol at $1.7M. GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month. Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B. Led by Executive Chairman Michael Saylor, the company also added to its bitcoin holdings last week, bringing its total stack to 650,000 BTC.Strategy has sold common stock to fund a $1.44 billion cash reserve to fund dividends on its preferred stock. The company sizably cut its full-year profit and BTC yield targets given the sharp recent declines in bitcoin's price.
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