Benchmark Equity Research has reaffirmed its Buy rating on Strategy (MSTR) with a $570 price target, even as volatility in the company’s STRC perpetual preferred stock draws market attention. The preferred security recently fell below $83 before recovering to close near $89 in a shortened trading week, while Strategy’s common shares ended Friday at $112.53, down 3.5%.
The target implies a potential 406% upside from current levels. Benchmark said its outlook is supported by Strategy’s bitcoin-backed balance sheet and the flexibility of its capital structure.
Volatility in STRC draws scrutiny
Benchmark addressed comparisons between STRC and the collapse of algorithmic stablecoins in 2022, rejecting similarities. The firm said STRC operates as a perpetual preferred stock with a variable dividend funded from corporate reserves, not a fixed-price mechanism.
The preferred shares were designed to trade around $100 but were not intended to maintain a strict peg. According to Benchmark, the recent decline reflects market-driven repricing rather than structural failure, with dividend yields adjusting based on market conditions.
Bitcoin holdings and liquidity support outlook
Strategy’s treasury holds more than 847,000 bitcoin, valued at approximately $55 billion, providing significant balance sheet backing. The firm also maintains approximately $1.4 billion in cash reserves to support dividend flexibility and manage liquidity during tighter capital conditions.
Benchmark said these structural supports remain intact despite recent price swings, pointing to the company’s ability to adapt its capital strategy.
Macro pressure and funding model under test
The broader environment is adding pressure. Bitcoin has been trading in a narrow range between $63,000 and $65,000, while higher-for-longer interest rate expectations from the Federal Reserve have weighed on perpetual income securities like STRC.
Market participants are closely watching Strategy’s funding model, particularly as STRC carries an estimated annual dividend burden exceeding $1 billion. The company has responded by increasing liquidity through at-the-market stock offerings, boosting cash reserves to $1.4 billion as of June 21, 2026.
Traders focus on sustainability
Rising trading volume during the selloff suggests active repricing rather than panic, according to Benchmark. Still, traders are monitoring how Strategy manages its obligations, including potential further bitcoin sales or equity issuance.
The coming weeks are likely to test whether the company can sustain its capital strategy in a cautious market where risk appetite remains subdued.
For deeper insight into bitcoin-backed assets and market structure, explore our guide on tokenized equities and crypto-linked securities.
Disclaimer: The content on this page is provided for general informational purposes only and does not represent the views or financial advice of Toobit. We make no guarantees regarding the accuracy or completeness of this information and shall not be held liable for any errors, omissions, or outcomes resulting from its use. Investing in digital assets involves risk; users should independently evaluate their financial situation and the risks involved. For further details, please consult our Terms of Service and Risk Disclosure.
