Benchmark Defends Strategy’s Equity Move, Reiterates $705 Price Target
Benchmark’s Mark Palmer pushed back against investor criticism of Strategy (MSTR), reaffirming his buy rating and $705 target price — more than double current levels near $332.
Retail investors had accused Executive Chairman Michael Saylor of weakening discipline by lifting the company’s self-imposed restriction on issuing equity when its premium to bitcoin net asset value (mNAV) falls below 2.5x. Palmer argued this view is misplaced.
According to the analyst, Strategy’s recent stock weakness stems from broader market conditions — including narrowing premiums, crypto volatility, and macro uncertainty — rather than management missteps. By revising guidance on Aug. 18 to allow tactical equity issuance below the 2.5x mNAV mark, the firm restored balance-sheet flexibility and preserved its ability to buy bitcoin during price dips.
Palmer said this decision is consistent with Strategy’s history of financial innovation, from refinancing debt with convertibles to launching perpetual preferred stock programs that have drawn hedge fund and volatility-trading demand. Such products have expanded its investor base and validated its role as a bridge between traditional markets and crypto.
Looking ahead, Palmer flagged potential S&P 500 inclusion as a key catalyst that could deliver billions in passive inflows, putting Strategy alongside Coinbase and Block as mainstream vehicles for crypto exposure.
He concluded that Strategy remains “the most liquid and direct vehicle for gaining bitcoin exposure without mining risk.”
