Benchmark Equity Research reiterated a Buy rating and $570 price target on Strategy, implying roughly 515% upside from the June 29 close, after the company unveiled a five-part Digital Credit Capital Framework. The plan includes a $2.55 billion reserve covering about 17.4 months of dividends, a $1 billion common-stock buyback, a $1 billion preferred-share repurchase plan across its STRC, STRF, STRD, and STRK issues, and board approval to sell up to $1.25 billion in Bitcoin from its 847,363 BTC treasury. Senior analyst Mark Palmer said the framework allows management to run Strategy's capital engine in reverse when needed, including repurchasing shares, monetizing Bitcoin to cover obligations, and pausing issuance when the stock trades below net asset value. He described the firm as an active manager of both sides of its capital structure and argued that fears of aggressive Bitcoin liquidation ignore scale, calling the $1.25 billion program a rounding error against the massive Bitcoin holdings. The announcement came after a roughly 12% weekly slide in MSTR stock and a drop in the variable-rate Stretch preferred STRC below $80, but shares rallied 12.6% on Monday to $92.68 following the news.
MicroStrategy IncorporatedAnalyst reiterates Buy rating and $570 price target, implying 515% upside, and company unveils capital framework including buybacks and Bitcoin sale authorization.