MicroStrategy (STRC) becomes the main driver of Bitcoin accumulation, Benchmark reaffirms a $705 target price

MicroStrategy Executive Chairman Michael Saylor announced at the 2026 Strategic World Conference in Las Vegas on February 25, 2026, that the company’s strategy is shifting away from actively encouraging enterprises to add Bitcoin to their balance sheets, and instead focusing on flagship perpetual preferred stock STRC as the primary financing tool for future Bitcoin acquisitions.

Saylor’s New “Digital Credit” Strategy: STRC Replaces Corporate Promotion as Core

(Source: Google Finance)

At the conference, Saylor defined this shift as part of the “Digital Credit” vision, repositioning Bitcoin as a “digital capital” convertible into yield-generating tools, rather than being directly held by corporate finance departments. Under this framework, proceeds from STRC issuance are directly used to acquire more Bitcoin: as holdings increase, the company will boost the amount of Bitcoin per share for common shareholders, while providing stable returns to preferred stock investors and reducing their direct exposure to Bitcoin price volatility.

Benchmark analyst Mark Palmer, in a client report, described STRC as the “main engine” behind MicroStrategy’s Bitcoin accumulation, noting that focusing on this instrument can accelerate Bitcoin growth per share. He emphasized that the company’s trading price of common stock remains well above its net asset value (NAV), maintaining a reflective structure that allows continuous value-added fundraising and expansion of holdings—while maintaining the integrity and stability of STRC has become a top priority in capital allocation decisions.

Benchmark Ratings and Target Price Analysis

Benchmark reaffirmed its “Buy” rating on MSTR in the latest report, with a target price of $705. Based on Thursday’s trading price of around $130, this implies approximately 430% potential upside. The target is based on segment valuation analysis, including projected Bitcoin holdings at the end of 2026, Bitcoin earnings multiples, and independent valuation of MicroStrategy’s traditional software business.

Recent Key Data Highlights for MicroStrategy

Current MSTR Stock Price: approximately $130 (as of Feb 26)

Benchmark Target Price: $705, potential upside of about 430%

STRC Status: Fell to $90 earlier this month, now rebounded close to $100 face value; annual yield about 11%, paid monthly, with liquidation rights senior to common stock

Bitcoin Holdings: 717,722 BTC, over 3% of total supply

Unrealized Losses: over $6.7 billion (according to Saylor Tracker, due to Bitcoin retreat from late 2025 highs)

At the time of this report, Bitcoin has significantly retreated from its late 2025 highs, and overall digital asset management firms are under pressure, but MicroStrategy continues to increase holdings through equity and preferred stock issuance, maintaining its position as the largest corporate Bitcoin holder globally.

Frequently Asked Questions

What is STRC, and how does it differ from MSTR common stock?

STRC is MicroStrategy’s flagship perpetual preferred stock, offering holders priority over common stock in liquidation and dividend distribution, with an annual yield of about 11%, paid monthly. Compared to the highly volatile MSTR common stock, STRC allows investors to receive fixed income related to MicroStrategy’s Bitcoin accumulation strategy without directly holding Bitcoin or common shares, reducing exposure to Bitcoin price swings.

What is the fundamental difference between Saylor’s “Digital Credit” strategy and previous strategies?

Previously, MicroStrategy’s core promotion was encouraging companies to include Bitcoin on their balance sheets; the new strategy shifts focus to promoting preferred securities like STRC as financing tools, creating a cycle of “issue STRC → buy Bitcoin → increase Bitcoin per share,” while providing stable returns to preferred investors and establishing a more structured capital market layout.

What are the main assumptions and risks behind the $705 target price from Benchmark?

The $705 target is based on segment valuation, primarily assuming MicroStrategy’s Bitcoin holdings, Bitcoin earnings multiples, and valuation of its traditional software business by the end of 2026. Key downside risks include: continued decline in Bitcoin prices which would directly compress holdings valuation; if STRC’s price stability is impacted, it could affect the company’s financing ability; and if the premium of common stock over NAV narrows, it could weaken the feasibility of value-added financing.