Wall Street broker Benchmark said Bitcoin The price pullback has reignited the usual alarms about the survival of treasury firm Bitcoin Strategy (MSTR), concerns it dismisses as noise that surfaces whenever the cryptocurrency falls.
In a report published Monday, analyst Mark Palmer claimed that critics were confusing short-term moves with real solvency risk, overlooking a balance sheet built to maximize bitcoin’s leverage.
With about 649,870 BTC ($55.8 billion) compared to $8.2 billion in ultra-low-cost convertibles and $7.6 billion in perpetual preferences, Palmer said Strategy’s bonds are manageable and its structure much stronger than its critics claim.
Access to perpetual preferences, permanent capital without a refinancing cliff, is a key competitive advantage that other digital asset treasury companies cannot match, the report said.
On the recurring question of distress levels, Benchmark said bitcoin is likely to fall below around $12,700 and stay there, an 86% decline that it considers highly unlikely in today’s institutionally driven market.
Palmer reiterated his buy rating on the shares and his target of $705, anchored by a bitcoin assumption of $225,000 in 2026, and said the recent pullback does not change that view.
Shares were down 4.7% in early trading, at $168.82. Bitcoin was down 6% at press time, or around $86,000.
As the digital asset treasury (DAT) sector faces volatility, exchange-traded fund (ETF) flows and liquidity stress, the broker sees the strategy as a clear asset – 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 Monday the creation of a reserve of 1.44 billion US dollars.
The reserve was funded by the sale of common stock last week, and Strategy initially intends to keep enough money in the reserve to fund at least 12 months of dividends, according to a press release.
Learn more: Strategy CEO: Long-Term Bitcoin Accumulation Plan with Equity and Debt Flexibility
