Benchmark senior equity research analyst Mark Palmer said Strategy stock could reach $570 by year-end if Bitcoin rebounds toward $95,000. Palmer made the MSTR call during a CNBC Fast Money se
Benchmark senior equity research analyst Mark Palmer said Strategy stock could reach $570 by year-end if Bitcoin rebounds toward $95,000.
Palmer made the MSTR call during a CNBC Fast Money segment, where he said the stock’s upside depends partly on Bitcoin recovering from the $60,000 range. MSTR recently traded near $100.77, while Bitcoin traded near $62,155.
Benchmark has kept a Buy rating and 570 price target on Strategy. The target sits several times above the current share price and remains tied to the company’s Bitcoin exposure, capital structure and ability to manage its preferred-stock obligations.
Strategy holds 847,363 BTC, acquired at an average purchase price of $75,651 per coin. At current Bitcoin prices, the company’s treasury remains below its average acquisition cost.
Palmer’s comments follow Strategy’s June 29 Digital Credit Capital Framework, which introduced a USD reserve policy, a revised STRC dividend policy, repurchase authorizations and a BTC monetization program.
The BTC monetization program allows Strategy to sell Bitcoin for three listed purposes: up to $1.25 billion to fund the USD Reserve, additional funding for preferred-stock dividends and debt interest, and repurchases of Digital Credit Securities or MSTR common stock.
The company listed a $2.55 billion USD Reserve as of June 28. That amount represented 17.4 months of coverage for expected preferred-stock dividends and interest expense. The reserve plus $1.25 billion of authorized BTC monetization capacity represented 25.9 months of coverage.
Strategy also raised STRC’s regular dividend rate to 12% for semi-monthly periods with record dates on or after July 1. STRC dividends remain subject to board declaration and are not guaranteed.
The $570 target lands after weeks of stress across MSTR and Strategy’s preferred-stock complex. JPMorgan warned that Strategy’s Bitcoin sales policy adds two-way flow risk because the company can now sell BTC in selected circumstances.
Bitwise CIO Matt Hougan also said Strategy’s role as Bitcoin’s largest buyer is likely changing as global banks, asset managers, pensions and sovereign wealth funds become larger sources of future demand.
Palmer’s upside case depends on a Bitcoin recovery toward $95,000 by year-end. It also depends on Strategy keeping enough liquidity to support preferred-stock dividends, avoiding forced BTC sales beyond its stated framework and preserving investor demand for MSTR while its treasury trades near current Bitcoin levels.
As of July 3, MSTR traded near $100.77, Bitcoin traded near $62,155, and Benchmark’s published Strategy target remained $570.
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