Benchmark Defends Strategy’s Equity Flexibility, Reaffirms $705 Price Target

Benchmark analyst Mark Palmer reaffirmed his buy rating and $705 price target on Strategy (MSTR), arguing the Michael Saylor-led company remains the strongest public proxy for bitcoin exposure despite recent share-price weakness. The target implies more than a doubling from Monday’s close near $332.

Retail investors have criticized Saylor for appearing to loosen discipline by adjusting a self-imposed rule that previously barred equity issuance when the firm’s premium to its bitcoin holdings (mNAV) dipped below 2.5x. But Palmer said that critique “misreads the situation,” noting the stock’s pullback reflects market forces — including narrowing premiums to net asset value and macro-driven volatility — rather than mismanagement.

Palmer emphasized that the company’s August 18 decision to allow tactical equity issuance below the 2.5x mNAV threshold was not a retreat from discipline but a restoration of flexibility. The update enables Strategy to keep purchasing bitcoin during market dips, preserving its accumulation flywheel.

The analyst framed the change as consistent with Strategy’s broader track record of balance sheet innovation. The company has previously refinanced restrictive debt with convertible bonds and more recently launched perpetual preferred stock — instruments that provide long-term capital without refinancing risk. Palmer said the preferred program, in particular, has been underappreciated, creating bitcoin-linked assets that have attracted hedge funds and volatility traders, and expanding the company’s investor base.

Looking ahead, Strategy could face another milestone: potential inclusion in the S&P 500, which would likely drive billions in passive inflows and further cement bitcoin exposure in mainstream equity portfolios alongside Coinbase (COIN) and Block (SQ).

Palmer concluded that Strategy remains the most liquid and direct vehicle for bitcoin exposure outside of ETFs and without mining-related risks, reiterating that its long-term strategy is intact despite near-term market headwinds.