Equity Expansion Leaves Bitcoin Strategy Intact, Says Benchmark on Strategy’s Shift

Benchmark: Strategy’s Flexibility Strengthens, Not Weakens, Its Bitcoin Play

Benchmark analyst Mark Palmer reaffirmed a buy rating on Strategy (MSTR) with a $705 price target, more than double the company’s current share price near $332, dismissing retail criticism of Michael Saylor’s recent equity strategy.

Some investors argued that Strategy undermined discipline by loosening its self-imposed rule against issuing shares when its premium to bitcoin net asset value (mNAV) dips below 2.5x. Palmer countered that the policy change, announced Aug. 18, actually restores flexibility and keeps the company positioned to accumulate bitcoin even during downturns.

According to Palmer, the weakness in MSTR shares reflects market factors — such as volatility in crypto and compressing premiums — rather than poor capital allocation. He added that Strategy has a track record of innovating with its balance sheet, citing its debt refinancing, convertible bonds, and perpetual preferred stock offerings that attracted hedge funds and volatility-focused investors.

Palmer also underscored the potential for S&P 500 inclusion, which could drive billions in passive inflows and further cement Strategy’s role as a leading equity proxy for bitcoin exposure.

“The firm remains the most liquid and direct way to gain exposure to bitcoin’s upside without mining-related risks,” Palmer wrote.