Strategy’s Equity Allocation Still Aligned With Core Bitcoin Play, Benchmark Affirms

Benchmark Analyst Defends Strategy’s Equity Flexibility, Maintains $705 Target

Benchmark’s Mark Palmer reaffirmed his buy rating and $705 price target on Strategy (MSTR), saying the recent share weakness reflects broader crypto market volatility rather than mismanagement by Executive Chairman Michael Saylor. The target implies more than a 100% upside from Monday’s $332 close.

Palmer argued that investor criticism of Strategy’s August 18 decision to allow equity issuance even when its premium to bitcoin net asset value (mNAV) falls below 2.5x is misplaced. The adjustment, he said, restores flexibility and ensures the company can continue accumulating bitcoin during downturns.

He noted that the move aligns with Strategy’s history of financial innovation, including refinancing restrictive debt, issuing convertible bonds, and launching perpetual preferred stock that has attracted hedge funds and volatility traders. Each step has broadened the investor base while reinforcing the company’s role as a bridge between traditional finance and crypto.

Palmer also flagged potential S&P 500 inclusion, which could trigger billions in passive inflows and put Strategy alongside Coinbase and Block as a mainstream equity vehicle for crypto exposure. He reiterated that MSTR remains the most liquid proxy for bitcoin upside outside ETFs and without mining risk.

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