Benchmark Bullish on MicroStrategy as Bitcoin-Linked Preferred Shares Give Firm Permanent Capital Edge

Wall Street broker Benchmark remains bullish on MicroStrategy (MSTR), highlighting the company’s bitcoin-linked perpetual preferred shares as a unique source of permanent capital that no other corporate digital asset treasury possesses.

In a Thursday report, Benchmark reaffirmed its buy rating and $705 price target for MSTR, even as the stock traded 2% lower around $324 in early sessions.

During a recent investor meeting hosted by Benchmark, Executive Chairman Michael Saylor detailed how these perpetual preferred shares reinforce MicroStrategy’s strategy, providing a stable capital base insulated from bitcoin price swings and avoiding dilution of common equity.

Analyst Mark Palmer noted that while other firms attempt to replicate MicroStrategy’s playbook, its 640,031 BTC treasury—more than twelve times larger than the next biggest corporate holder—remains unmatched.

Saylor described the approach as turning bitcoin into the foundation for a new fixed income market, akin to how mortgage-backed securities transformed real estate. Investor interest is strong: the STRC offering in July raised $2.52 billion, marking the largest U.S. IPO this year.

Benchmark anticipates the bitcoin-linked fixed income market could grow into a multi-hundred-billion-dollar industry, with MicroStrategy positioned as its architect. The firm’s price target incorporates projected bitcoin value, a 10x multiple on expected gains, and MicroStrategy’s software business outlook through 2026.