MSTR Target Price Remains $570, Benchmark Equity Research Writes: Why So Bullish?

Benchmark Equity Research has reiterated its Buy rating and $570 price target on Strategy Inc. (NASDAQ:MSTR), pushing back on concerns that five straight weeks without a Bitcoin (CRYPTO: BTC) purchase signals a strategy change.

What Did Benchmark Actually Say?

Benchmark analyst Mark Palmer said in a note to clients Monday, cited by The Block, that Strategy’s decision to build cash reserves rather than buy Bitcoin reflects disciplined capital allocation, not a shift in its long-term approach.

“The company has made clear that it remains a long-term buyer of bitcoin while strengthening its balance sheet,” Palmer wrote.

The $3.75 billion reserve gives Strategy flexibility to fund preferred dividend obligations while keeping the option to resume Bitcoin purchases when conditions improve.

Palmer also pointed to Strategy’s repurchase of (NASDAQ:STRC) preferred shares as evidence its Digital Credit Capital Framework is working as intended, allowing management to deploy capital across multiple parts of the balance sheet simultaneously.

Why Has Strategy Paused Bitcoin Buying For Five Weeks?

Strategy has raised over $2.4 billion in five weeks without adding a single Bitcoin, directing proceeds toward its USD reserve and preferred stock obligations rather than accumulation. 

The reserve now covers roughly 2.1 years of preferred dividends, with the company needing to fund approximately $1.76 billion in annual preferred dividends and debt interest.

Here is how the past five weeks broke down:

• June 22–28 — Sold 12.67M shares, raised $1.15B, boosted reserve to $2.55B
• June 29–July 5 — Sold 3,588 BTC for $216M to fund dividends
• July 6–12 — Sold 4.82M shares, raised $466.7M, reserve to $3B
• July 13–19 — Sold 2.73M shares, raised $263.5M, reserve to $3.225B
• July 20–26 — Sold 5.43M shares, raised $544.5M, reserve to $3.75B, repurchased $25M of STRC

Where Does MSTR Stand Technically?

MSTR surged 6% on Monday, pressing directly into the Bollinger Band upper band at $102.82 and the descending trendline that has capped every rally since May. 

The Parabolic SAR flipped bullish at $87.82, the first constructive signal since the June collapse, while the BB mid-band at $95.61 has been reclaimed after weeks below it.

Bollinger Bands are beginning to expand upward after a long squeeze, a setup that typically precedes a directional move. Earnings next week mark the potential catalyst.

Key levels for MSTR:

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