Benchmark Reaffirms Buy Rating on MSTR Amid Pause in Bitcoin Purchases
Benchmark Equity Research has reiterated its Buy rating and $570 price target for Strategy (MSTR), stating that the company's recent decision to build cash reserves rather than continue weekly Bitcoin purchases reflects disciplined capital allocation, not a shift in long-term strategy.
The decision to pause Bitcoin acquisitions comes as Strategy increased its U.S. dollar reserve to $3.75 billion and sold 5.4 million MSTR shares for $544.5 million, raising liquidity. Benchmark's Mark Palmer notes that the larger reserve gives Strategy flexibility to fund preferred dividend obligations while preserving its ability to resume Bitcoin purchases when market conditions become more attractive.
The company currently holds 843,775 BTC acquired at an average purchase price of $75,476 per bitcoin, and its treasury is valued at roughly $54 billion. This represents over 4% of Bitcoin's maximum 21 million supply. President and CEO Phong Le recently told Bloomberg Television that Strategy remains committed to accumulating Bitcoin over the long term.