The company’s bitcoin-linked perpetual preferred shares give it a lasting capital edge, analyst Mark Palmer said.
By Will Canny, AI Boost|Edited by Stephen Alpher
Oct 9, 2025, 1:59 p.m.
- Strategy’s bitcoin-linked perpetual preferred shares give it permanent, non-dilutive capital, according to Benchmark analyst Mark Palmer.
- Michael Saylor is positioning the company as the architect of a new bitcoin-backed fixed income market, said Palmer.
- Benchmark reiterated its buy rating and $705 price target, citing long-term structural advantages.
Wall Street broker Benchmark remains bullish on Strategy (MSTR) despite the stock’s recent struggles, arguing that its bitcoin-linked perpetual preferred shares give it something no other digital asset treasury can match: permanent capital.
The broker reaffirmed its Strategy buy rating and $705 price target in the Thursday report. The stock was 2% lower in early trading, around $324.
STORY CONTINUES BELOW
In an investor meeting hosted by Benchmark this week, Executive Chairman Michael Saylor outlined how these instruments strengthen the company’s strategy.
While other firms race to replicate Strategy’s playbook, the company’s 640,031 BTC treasury, more than twelve times the next-largest corporate holder, remains unrivaled, analyst Mark Palmer said.
Its real edge, Palmer said, is in the structure of its perpetual preferred shares. These remove refinancing risk tied to bitcoin’s price swings, giving the company a stable capital base without diluting common equity.
Saylor framed the strategy as turning bitcoin into the foundation for a new fixed income market, much as mortgage-backed securities transformed real estate, the report noted. Investors are buying in: the STRC offering in July raised $2.52 billion, the largest U.S. IPO this year.
Benchmark sees bitcoin-linked fixed income evolving into a multi-hundred-billion-dollar market, with Strategy as its architect.
The broker’s price target reflects projected bitcoin value, a 10x multiple on expected gains, and the company’s software business outlook through 2026.
Read more: Strategy Q3 Bitcoin Gains Were $3.9B; No Weekly Buys for First Time Since April
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
More For You
Sep 9, 2025
Combined spot and derivatives trading on centralized exchanges surged 7.58% to $9.72 trillion in August, marking the highest monthly volume of 2025
What to know:
- Combined spot and derivatives trading on centralized exchanges surged 7.58% to $9.72 trillion in August, marking the highest monthly volume of 2025
- Gate exchange emerged as major player with 98.9% volume surge to $746 billion, overtaking Bitget to become fourth-largest platform
- Open interest across centralized derivatives exchanges rose 4.92% to $187 billion
More For You
By Omkar Godbole, Oliver Knight
44 minutes ago
A firmer U.S. dollar and fading risk appetite weighed on bitcoin Thursday, while Binance’s new Meme Rush platform targets surging Chinese-language memecoin speculation.
What to know:
- BTC fell to $121,500 as global equities softened and the U.S. dollar remained resilient.
- Futures open interest declined across majors, led by AVAX and ASTER, as traders took profits. Funding rates remain near 10%, suggesting a healthy derivatives market without excess leverage.
- Binance introduced a memecoin-focused trading hub integrating early-stage token listings, social metrics, and rewards — capitalizing on booming Chinese-language meme token activity and record DEX volumes on BNB Chain.
