Wall Street broker Benchmark said Bitcoin The price drop has revived general concerns about the existence of the Bitcoin Treasury Company Strategy (MSTR), concerns it dismisses as noise that comes up whenever the cryptocurrency drops.
In a report published on Monday, analyst Mark Palmer argued that critics are confusing short-term moves with real solvency risks, ignoring Bitcoin’s balance sheet built to maximize leverage.
With about 649,870 BTC ($55.8 billion), along with $8.2 billion in ultra-low-cost convertibles and $7.6 billion in perpetual preferreds, Palmer said the strategy’s liabilities are manageable and its structure is much stronger than detractors’ claims.
Perpetual Preferred, access to permanent capital without any refinancing cliff, is a key competitive edge that other digital-asset-treasury companies cannot match, the report said.
On the recurring question of crisis levels, the benchmark said Bitcoin would need to fall below around $12,700 and stay there, with a decline of 86% considered highly unlikely in today’s institution-driven market.
Palmer reiterated his buy rating and $705 price target on shares, based on a 2026 Bitcoin assumption of $225,000, and said the recent pullback doesn’t change that view.
Shares were down 4.7% at $168.82 in early trading. Bitcoin was 6% lower at the time of publication, around $86,000.
With volatility in the digital asset treasury (DAT) sector, reduced exchange-traded fund (ETF) flows and liquidity stress, the broker sees the strategy as a clear standout – scalable, yield-producing and structurally advantageous – and he expects the company to lead a rebound as liquidity and regulatory clarity improve.
The company on Monday announced the creation of US$1.44 billion in reserves.
According to a press release, the reserve was funded through the previous week’s sale of common stock, and the strategy initially intended to hold enough money in the reserve to fund at least 12 months of dividends.
Read more: Strategy CEO: Equity and Debt Resilience Power Long-Term Bitcoin Accumulation Plan