Benchmark Stands Firm on Strategy Despite Five-Week Bitcoin Pause

Strategy Inc.'s stock has been falling after Benchmark Equity Research reaffirmed its Buy rating and $570 price target for the company. Despite concerns over Strategy's five-week pause in Bitcoin purchases, Benchmark analyst Mark Palmer said that the company remains a long-term buyer of Bitcoin.

The pause, which began after Strategy shifted focus to building its U.S. dollar reserve, has seen the company direct proceeds toward its balance sheet and preferred share obligations. Over the past five weeks, Strategy has raised more than $2.4 billion without adding new Bitcoin purchases.

Strategy's cash reserve has grown to $3.75 billion, covering about 2.1 years of preferred dividends and debt interest. The company's Bitcoin holdings remain unchanged at 843,775 BTC. Benchmark views the recent cash-building activity as disciplined capital allocation rather than a shift away from Bitcoin.

The company needs around $1.76 billion each year to fund preferred dividends and debt interest. Strategy recently introduced new metrics on its website, including Net Reserve, Net BTC, and Net BTC Per Share, which Benchmark sees as part of the company's shift toward a broader digital credit structure.