Strategy Stock Price Could Nearly Double as Bitcoin Treasury Aims to Dominate Market: Benchmark

Benchmark analyst Mark Palmer reiterated his buy rating for Bitcoin giant Strategy, raising the firm’s price target for MSTR to $705, an 85% increase from its current share price.

The new target hinges on a projection that Bitcoin will reach $225,000 by the end of 2026.

After reporting $10 billion in net income in Q2—almost entirely unrealized gains on its $71 billion Bitcoin holdings—the company’s stock is trading around $379.71, according to Yahoo Finance. That marks a 4% drop since the opening bell.

Palmer said MSTR may be remembered less for its “eye-popping” earnings and more for its ambitions “to become not just the dominant Bitcoin treasury company, but the world’s largest corporate treasury, full stop.”



CEO Phong Le said during yesterday’s earnings call that the company aims for its treasury to top that of Microsoft, Google, and Amazon in the next three to five years. And he added that eventually he wants to exceed that of the largest corporate treasury: Berkshire Hathaway’s $410 billion in cash and cash equivalents.

Palmer also noted a big shift in how the company plans to fund its Bitcoin treasury growth, by retiring its convertible debt and replacing it with a preferred-stock-focused funding model.

Saylor said during last night’s earnings call that convertible notes, which it was using as recently as November 2024, was an appropriate instrument for MSTR’s earlier stages of Bitcoin acquisition. But in January, the company redeemed $1 billion in convertible notes in an effort to reduce its leverage.

The Benchmark note also called attention to Strategy’s new approach to issuing common equity, only selling shares when its stock trades at a premium to the calculated per-share value of its Bitcoin and operating assets.

“The upshot is that MSTR is not just buying Bitcoin anymore, but instead engineering a corporate treasury machine designed to generate Bitcoin-denominated returns, manage its capital raises with precision, and scale faster,” Palmer wrote.

At the time of writing, though, Bitcoin has been battered with the rest of the crypto market and equities.

BTC is currently changing hands for $114,950 after having dropped 3.1% in the past day. And spot trading volume in the past day has shot up to $57 billion, according to price aggregator CoinGecko. Meanwhile, the broader crypto global market capitalization has sunk 8% since Thursday, sitting now at $3.8 trillion.

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