Senior analyst predicts 500% surge for MSTR stock despite bearish news

Analysts astatine Benchmark Equity Research are doubling down on Strategy (NASDAQ: MSTR), the largest firm holder of Bitcoin (BTC).

This comes aft the institution rolled retired a five-part Digital Credit Capital Framework. It broadens its quality to bargain backmost securities, merchantability Bitcoin, and steer superior done periods of marketplace stress.

Related: Analysts stock stark informing for Strategy

Benchmark backs two-way superior instrumentality

Strategy announced a caller model connected June 29. It sets up a $2.55 cardinal reserve covering astir 17.4 months of dividends, a $1 cardinal common-stock buyback, a $1 cardinal preferred-share repurchase program spanning its STRC, STRF, STRD, and STRK issues, and committee support to merchantability up to $1.25 cardinal successful Bitcoin from an 847,363 BTC treasury.

According to TheBlock, Senior Equity Research Analyst Mark Palmer said the program allows absorption to tally Strategy's superior motor successful "reverse" erstwhile markets request it, including repurchasing shares, monetizing Bitcoin to screen obligations, and pausing issuance erstwhile banal trades beneath nett plus value. 

He described the steadfast arsenic "an progressive manager of some sides of its superior structure."

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Bitcoin monetization framed arsenic a rounding mistake

Palmer explained that each constituent maps to a circumstantial capitalist worry, from clearer capital-use parameters to higher preferred dividends and buybacks pitched arsenic an reply to dilution complaints. 

The shift, helium added, moves Strategy from one-way issuance toward issuing erstwhile superior is inexpensive and buying backmost erstwhile its instruments commercialized astatine accretive levels.

Benchmark argued fears of assertive Bitcoin liquidation disregard scale. Strategy sold conscionable 32 Bitcoin successful May, and against 847,363 BTC, the expert called the $1.25 cardinal programme a "rounding error."

The caller program comes aft a astir 12% play descent successful MSTR banal and a driblet successful STRC, the variable-rate Stretch preferred, beneath $80. 

Benchmark reiterated its "Buy" standing and $570 terms target. The people sits astir 515% supra wherever the banal closed connected June 29. On Monday, shares of the Bitcoin treasury institution jumped 12.6% to $92.68, rallying aft Strategy elaborate the caller framework.

At property time, MSTR traded astir 4.35% little adjacent $88.65 successful pre-market hours, portion STRC fell 1.63% to astir $82.31.

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This communicative was primitively published by TheStreet connected Jun 30, 2026, wherever it archetypal appeared successful the MARKETS section. Add TheStreet arsenic a Preferred Source by clicking here.