Still Bullish on Bitcoin: Benchmark Sticks With MicroStrategy and a $705 2026 Target
Benchmark Reaffirms Buy Rating on MicroStrategy, Sees Strong Upside Through Bitcoin Strategy
Benchmark has reaffirmed its Buy rating on MicroStrategy (MSTR), signaling renewed confidence in the company’s long-term strategy and its deep commitment to Bitcoin as a core business asset. The investment firm also reiterated a 2026 price target of $705 per share, implying substantial upside potential despite the stock’s sharp decline over the past year amid heightened volatility in the crypto market.
The endorsement positions MicroStrategy as one of the highest-conviction vehicles for Bitcoin exposure in public equity markets. While the stock has endured significant drawdowns alongside Bitcoin’s price fluctuations, Benchmark’s analysis suggests that the company’s underlying fundamentals and strategic positioning could deliver outsized returns over the next several years.
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| Source: XPost |
MicroStrategy’s Bitcoin-Centric Business Model
MicroStrategy has evolved far beyond its origins as a traditional enterprise software firm. Under the leadership of executive chairman Michael Saylor, the company has become the world’s largest corporate holder of Bitcoin, transforming its balance sheet into a de facto leveraged Bitcoin treasury.
According to Benchmark, MicroStrategy currently holds approximately 671,000 BTC, acquired at an average price near $66,000 per coin. This strategy has fundamentally reshaped how investors evaluate the company. Rather than focusing primarily on software revenues, many market participants now view MicroStrategy as a public-market proxy for long-term Bitcoin exposure.
Benchmark’s reaffirmed Buy rating reflects confidence that this approach will outperform over a multi-year horizon, particularly as Bitcoin adoption continues to expand and macroeconomic conditions become more favorable for scarce digital assets.
Trading Below Bitcoin Net Asset Value
One of the strongest arguments supporting Benchmark’s bullish outlook is valuation. At current market levels, MicroStrategy shares are estimated to be trading at roughly a 26 percent discount to the company’s Bitcoin net asset value, based on Bitcoin prices near $95,000.
This discount suggests that equity markets are not fully valuing the company’s underlying Bitcoin holdings relative to its stock price. For investors, such a gap represents potential upside if Bitcoin prices rise further or if investor sentiment toward Bitcoin-linked balance sheets improves.
Benchmark notes that historically, valuation discounts of this nature tend to compress during bullish phases for Bitcoin. If that pattern repeats, MicroStrategy’s shares could appreciate rapidly as the market reassesses the company’s intrinsic value.
Volatility as a Feature, Not a Flaw
MicroStrategy stock has experienced extreme volatility, falling by approximately 66 percent over the past year. Much of that decline mirrors Bitcoin’s own price swings, combined with broader risk-off sentiment in equity markets.
Rather than viewing this volatility as a weakness, Benchmark frames it as an inherent characteristic of MicroStrategy’s strategy. By design, the company offers amplified exposure to Bitcoin’s price movements. For investors seeking asymmetric upside tied to Bitcoin’s long-term scarcity, that volatility can be an advantage rather than a liability.
Benchmark emphasizes that MicroStrategy is not intended for short-term traders seeking stability. Instead, it appeals to long-term investors who believe in Bitcoin’s role as a store of value and are willing to tolerate significant price fluctuations in pursuit of higher returns.
Bitcoin’s Growing Role in Corporate Treasuries
MicroStrategy’s approach has had ripple effects across corporate finance. An increasing number of companies are now exploring Bitcoin as a treasury reserve asset, viewing it less as a speculative instrument and more as a hedge against currency debasement and long-term inflation risks.
This shift strengthens the broader narrative around Bitcoin’s institutionalization. As more corporations consider allocating to Bitcoin, Benchmark believes MicroStrategy stands to benefit disproportionately due to its early-mover advantage, scale, and established presence in capital markets.
Unlike newer entrants, MicroStrategy already has brand recognition, experience issuing equity and debt tied to Bitcoin strategy, and a track record that investors can evaluate. These factors, according to Benchmark, give the company a structural advantage that competitors may struggle to replicate.
The Case Behind the $705 Price Target
Benchmark’s 2026 price target of $705 per share implies more than 360 percent upside from recent trading levels. The projection is based on a combination of factors, including higher long-term Bitcoin prices, improved investor sentiment, and greater comfort with Bitcoin-heavy balance sheets.
Importantly, Benchmark does not base its forecast on aggressive or speculative assumptions. Instead, the firm assumes a scenario in which Bitcoin recovers and maintains elevated price levels as adoption broadens among institutions and sovereign entities.
As Bitcoin matures and becomes more integrated into global financial systems, Benchmark expects equity markets to apply higher valuation multiples to companies with significant Bitcoin exposure. MicroStrategy, given its scale and visibility, is seen as the primary beneficiary of that trend.
Risks and Considerations
Despite the bullish outlook, Benchmark acknowledges that MicroStrategy remains a high-risk investment. Bitcoin price declines, regulatory changes, or prolonged macroeconomic tightening could all weigh on both Bitcoin and MicroStrategy shares.
There is also the risk that equity markets continue to apply a discount to Bitcoin-linked companies, particularly during periods of uncertainty. Investors must also consider dilution risks if MicroStrategy continues to issue equity or debt to fund additional Bitcoin purchases.
Still, Benchmark argues that these risks are balanced by the potential rewards, especially for investors with a long-term horizon who view Bitcoin as a foundational asset class rather than a passing trend.
A High-Conviction Bitcoin Proxy
The reinstated Buy rating underscores Benchmark’s belief that MicroStrategy remains one of the most compelling ways to gain Bitcoin exposure through public markets. While the stock has underperformed recently, its discount to Bitcoin net asset value and massive BTC holdings create what Benchmark describes as a favorable risk-reward profile.
As Bitcoin continues to evolve from a niche asset into an institutional-grade store of value, MicroStrategy’s leveraged exposure could amplify gains relative to direct Bitcoin ownership. For investors willing to navigate volatility, Benchmark sees MicroStrategy as uniquely positioned to outperform through 2026 and beyond.
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Ethan Collins is a passionate crypto journalist and blockchain enthusiast, always on the hunt for the latest trends shaking up the digital finance world. With a knack for turning complex blockchain developments into engaging, easy-to-understand stories, he keeps readers ahead of the curve in the fast-paced crypto universe. Whether it’s Bitcoin, Ethereum, or emerging altcoins, Ethan dives deep into the markets to uncover insights, rumors, and opportunities that matter to crypto fans everywhere.
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