Michael Saylor's MicroStrategy Creates Bitcoin-Backed Fixed Income Market: Benchmark Analysis

Wall Street firm Benchmark maintains its bullish outlook on MicroStrategy (MSTR) despite recent stock performance challenges, highlighting the company's unique bitcoin-linked perpetual preferred shares as providing unmatched permanent capital in the digital asset treasury space. The broker reaffirmed its buy rating and $705 price target in Thursday's report, while the stock traded 2% lower around $324 in early trading. During an investor meeting hosted by Benchmark, Executive Chairman Michael Saylor detailed how these financial instruments strengthen the company's strategic position. Analyst Mark Palmer noted that while competitors attempt to replicate MicroStrategy's approach, the company's 640,031 BTC treasury - more than twelve times larger than the next biggest corporate holder - remains unchallenged. Palmer emphasized that the real competitive advantage lies in the structure of perpetual preferred shares, which eliminate refinancing risk associated with bitcoin price volatility while providing stable capital without diluting common equity. Saylor positioned this strategy as transforming bitcoin into the foundation for a new fixed income market, similar to how mortgage-backed securities revolutionized real estate. Investor response has been strong, with the July STRC offering raising $2.52 billion, marking the largest U.S. IPO this year. Benchmark anticipates bitcoin-linked fixed income evolving into a multi-hundred-billion-dollar market with MicroStrategy as its primary architect. The broker's price target incorporates projected bitcoin value, a 10x multiple on expected gains, and the company's software business outlook through 2026.