ChainCatcher report, according to The Block, Benchmark Equity Research has reaffirmed its Buy rating on MicroStrategy (MSTR), maintaining its price target of $570. This target represents approximately a 406% upside from Friday’s closing price of $112.53. Although MicroStrategy’s perpetual preferred stock, STRC, experienced significant selling pressure last week, dropping as low as around $83, Benchmark analyst Mark Palmer stated that STRC is not a stablecoin and does not feature a Terra/Luna-style feedback mechanism. Instead, it is a perpetual preferred stock backed by over 847,000 bitcoins (approximately $55 billion) held by MicroStrategy. Palmer believes the decline in STRC is not a “de-pegging,” but rather a market recalibration of required yields. The company currently holds approximately $1.4 billion in cash reserves, which can be flexibly deployed to support dividend payments. Benchmark views this sell-off as a stress test of its financing model, not as evidence of structural deterioration.
Benchmark Maintains Buy Rating for MSTR, Attributes STRC Decline to Higher Yield Demands
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Summary
Benchmark maintains a buy rating on MSTR with a $570 price target, implying a 406% upside from Friday’s closing price of $112.53. MSTR’s perpetual preferred stock, STRC, fell to $83 as investors demand higher yields. Analyst Mark Palmer noted that STRC is not a stablecoin and lacks a reflexivity mechanism like Terra/Luna. It is backed by over 847,000 BTC, or $55 billion, and the decline reflects changing yield expectations. The firm views this movement as a stress test for MSTR’s financing model. Amid Bitcoin price volatility, altcoins such as MSTR remain under pressure.
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