Strategy (MSTR) Still the Premier Bitcoin (BTC) Price Proxy, Benchmark Says, Rejecting ‘Doom’ Narrative
Benchmark asserts that MicroStrategy remains the strongest Bitcoin proxy, dismissing solvency fears as misplaced noise during price pullbacks.Summary
Wall Street broker Benchmark issued a report arguing that fears surrounding MicroStrategy's (MSTR) solvency during recent Bitcoin (BTC) price declines are misplaced noise. Analyst Mark Palmer stated that critics overlook the company's balance sheet, which is structured to maximize Bitcoin leverage, holding about 649,870 BTC against manageable debt obligations from low-cost convertibles and perpetual preferred stock. Benchmark highlighted that access to perpetual preferreds is a core competitive edge. The firm calculated that Bitcoin would need to drop below approximately $12,700—an 86% fall—to trigger distress, which they deem highly unlikely. Benchmark reiterated its buy rating and $705 target, viewing MicroStrategy as the clear standout in the digital asset treasury sector, expecting it to lead a rebound.
(Source：CoinDesk)