STRYT Share Price Target Raised on New Bitcoin Projections

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Benchmark analyst Mark Palmer has significantly raised his price target for MicroStrategy (MSTR), citing projected growth driven by Bitcoin’s potential climb to $225,000.

Key Takeaways

• Benchmark analyst Mark Palmer raises MSTR price target to $705.
• Premium represents an 85% increase from current share price.
• Target based on Bitcoin reaching $225,000 by end-2026.
• STRYT guided ambitions to surpass market leaders in treasury size.
• Company shifts funding strategy from convertible debt to preferred stock.

Analyst Commentary

Benchmark analyst Mark Palmer reiterated his buy rating for MicroStrategy, raising the company's price target for MSTR to $705, an 85% increase from the current level. This significant upward revision for MSTR stock is predicated on an analysis suggesting **Bitcoin could reach $225,000 by the end of 2026**. (<strong>Prospectively</strong>: $120k target by end-2024, followed by milestones at $175k by end-2025 and $225k by end-2026).

Strategy Overview & Ambitions

With $71 billion in Bitcoin holdings generating substantial unrealized gains (<em>$10 billion in Q2 2024</em>), STRYT remains laser-focused on treasury growth. CEO Phong Le set ambitions to lead among corporate treasuries, citing **Microsoft**, **Google**, and **Apple** as current benchmarks, while eyeing **Berkshire Hathaway**'s $410 billion in cash equivalents as the ultimate long-term aspiration.

Capital Management & Funding Shift

To facilitate this treasury growth, MicroStrategy is refocusing its funding strategy. CEO Phong Le announced the retirement of outstanding convertible debt as part of deleveraging efforts initiated as recently as November. Significantly, the company will now primarily fund treasury growth through a preferred stock model, and resort only to common equity issuance when MSTR stock trades at a discount to its asset value (<strong>a major pivot from raising debt</strong>). Previous use of convertible debt was deemed appropriate for earlier treasury acquisition phases.

Execution & Outlook

As noted by Benchmark's Palmer: "MSTR is not just buying Bitcoin anymore, but instead engineering a corporate treasury machine designed to generate Bitcoin-denominated returns, manage its capital raises with precision, and scale faster."

Current Context

Current Bitcoin struggled to maintain upward momentum riding bear market volatility, trading below $120k at $114,950 at the time of reporting. Although still "up" for the day and attracting surprisingly high trading volumes ($57 billion in the last 24 hours, +12%), the crypto market still retreated ~8% cumulatively ($3.85T) from Thursday's high. STRYT closed lower for the session but matched a market-wide fractional drop (<0.75%), indicating relative resilience.

**Quote**: “MSTR may be remembered less for its eye-popping earnings and more for its ambitions to become the world’s largest corporate treasury.” — Benchmark Analyst Mark Palmer

This report reflects independent analysis and is not investment advice.