Benchmark Credits Michael Saylor’s Strategy for Shaping New Bitcoin-Backed Fixed Income Market

MicroStrategy’s Bitcoin-Linked Preferred Shares Give Firm Permanent Capital, Benchmark Says

MicroStrategy (MSTR) continues to draw bullish attention from Benchmark, which reiterated its buy rating and $705 price target in Thursday’s report, despite the stock trading 2% lower near $324.

Benchmark highlighted the company’s bitcoin-linked perpetual preferred shares as a unique advantage, providing a stable capital base insulated from bitcoin price volatility and avoiding dilution of common equity.

During a recent investor session, Executive Chairman Michael Saylor explained how these instruments underpin MicroStrategy’s broader strategy. Analyst Mark Palmer noted that the company’s 640,031 BTC treasury, more than twelve times the size of its nearest corporate competitor, remains unmatched.

Saylor framed the approach as creating a new bitcoin-backed fixed income market, similar to how mortgage-backed securities transformed real estate. Investor interest has been strong: the STRC offering in July raised $2.52 billion, marking the largest U.S. IPO this year.

Benchmark sees this emerging market growing 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.