MicroStrategy’s Bitcoin-Linked Preferred Shares Give Firm Permanent Capital, Benchmark Says
Benchmark reaffirmed its buy rating and $705 price target on MicroStrategy (MSTR), highlighting the company’s bitcoin-linked perpetual preferred shares as a unique advantage that provides permanent capital—something no other corporate digital asset treasury possesses.
Despite MSTR trading 2% lower near $324, Benchmark remains confident in the company’s approach. Executive Chairman Michael Saylor explained that these shares eliminate refinancing risk tied to bitcoin price swings, giving the firm a stable capital base without diluting common equity.
Analyst Mark Palmer emphasized that MicroStrategy’s 640,031 BTC treasury, over twelve times the size of its nearest corporate competitor, remains unmatched, even as other firms attempt to replicate its strategy.
Saylor framed the approach as creating a new bitcoin-backed fixed income market, similar to how mortgage-backed securities reshaped real estate. Investor demand has been strong: the STRC offering in July raised $2.52 billion, the largest U.S. IPO this year.
Benchmark expects the bitcoin-linked fixed income market to grow into a multi-hundred-billion-dollar industry, with MicroStrategy positioned as its architect. The firm’s price target factors in projected bitcoin value, a 10x multiple on expected gains, and the company’s software business outlook through 2026.
