Strategy Still the Premier Bitcoin Proxy, Benchmark Says, Rejecting ‘Doom’ Narrative

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Strategy Still the Premier Bitcoin Proxy, Benchmark Says, Rejecting ‘Doom’ Narrative

The broker said fears over Strategy’s solvency are misplaced and the stock remains the strongest asymmetric bet on bitcoin.

By Will Canny, AI Boost|Edited by Sheldon Reback

Dec 1, 2025, 2:02 p.m.

Michael Saylor, executive chairman of Strategy. (CoinDesk)

What to know:

• Benchmark said Strategy’s share-price pullback has revived an unfounded doom narrative that ignores its bitcoin reserves and capital structure.
• The broker argued that MSTR’s perpetual preferred stock and low-cost convertibles give it unmatched bitcoin leverage with limited solvency risk.
• Analyst Mark Palmer reiterated his buy rating on the stock and $705 price target.

Wall Street broker Benchmark said bitcoin’s BTC$86,216.86 price pullback has revived the usual alarms about the survival of bitcoin treasury company Strategy (MSTR), concerns it dismisses as noise that surfaces whenever the cryptocurrency falls.

In a report published Monday, analyst Mark Palmer argued that critics are confusing short-term moves with genuine solvency risk, overlooking a balance sheet built to maximize bitcoin leverage.

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With about 649,870 BTC ($55.8 billion) against $8.2 billion in ultra-low-cost convertibles and $7.6 billion in perpetual preferreds, Palmer said that Strategy’s obligations are manageable and its structure far sturdier than detractors claim.

Access to perpetual preferreds, permanent capital with no refinancing cliff, is a core competitive edge that other digital-asset-treasury firms can’t match, the report said.

On the recurring question of distress levels, Benchmark said bitcoin would need to fall below roughly $12,700 and stay there, an 86% drop it views as highly unlikely in today’s institution-driven market.

Palmer reiterated his buy rating on the shares and $705 target, anchored to a 2026 bitcoin assumption of $225,000, and said the recent pullback doesn’t alter that view.

The shares were 4.7% lower in early trading, at $168.82. Bitcoin was 6% lower at publication time, around $86,000.

With the digital asset treasury (DAT) sector navigating volatility, exchange-traded fund (ETF) flow chop and liquidity stress, the broker sees Strategy as the clear standout — scalable, yield-generating and structurally advantaged — and said it expects the company to lead a rebound as liquidity and regulatory clarity improve.

The company announced the formation of $1.44 billion U.S. dollar reserve on Monday.

The reserve was funded via the sales last week of common stock, and Strategy initially intends to keep enough money in the reserve to fund at least 12 months of dividends, according to a press release.

Read more: Strategy CEO: Equity and Debt Flexibility Power Long-Term Bitcoin Accumulation Plan

StrategyBitcoin Treasury Reserve AssetBenchmark

AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.

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