Benchmark Company has reiterated its Buy rating on MicroStrategy (MSTR) that indicates a new level of trust in the long-term plan of the company, as well as its approach to business based on Bitcoin. The investment bank had also given a price target of 2026 of 705 per share meaning that there is a significant growth potential. This is even after a difficult year on the stock which has fallen drastically with the volatility of Bitcoin. Continuing to be bullish, Benchmark makes MicroStrategy more of a high-conviction proxy to Bitcoin exposure in the capital markets.
Bitcoin’s Strategy
MicroStrategy remains the biggest corporate Bitcoin owner on the planet. The company has gained a total of 671,000 BTC under the leadership of its executive chairman Michael Saylor, who has purchased the coins at an average price of close to $66,000 per unit. This plan has turned MicroStrategy into a leveraged Bitcoin treasury vehicle and not a typical software company anymore. The rating of Benchmark indicates that it is confident that this strategy will perform better in the next multi-year period when the use of Bitcoin will increase and when macro conditions become favorable.
What’s Below Bitcoin Net Asset Value Stock Trades
Valuation is one of the best cases in favor of the bulls (Benchmark). MicroStrategy is trading at an estimated 26 percent discount to its Bitcoin net asset value, according to current BTC prices of close to 95,000. The implication of this discount is that the market does not value the underlying Bitcoin holdings of the firm in comparison to the equity price. Provided that the price of Bitcoin increases or the mood of investors is getting better, this valuation difference can decrease fastest, leading to a substantial appreciation in MSTR stock.
Volatility Coats Future Possibility
MicroStrategy shares have plummeted drastically by approximately 66 percent in the last one year, partly because of Bitcoin price fluctuations and general risk-off mood in the stocks. The company considers volatility an asset but not a weakness when applied to investors who want to take advantage of asymmetric gains on the long-term scarcity and institutionalization of Bitcoin.
Bitcoin in a Corporate Treasury Asset
The approach of MicroStrategy has impacted more and more companies that are considering Bitcoin as a treasury reserve. This trend reinforces the story that Bitcoin is being used as a digital store of value, but not as a speculative tool. Benchmark believes that this change will favor MicroStrategy with a disproportionate amount of advantage, given that it is already at scale, brand name, and capital market experience, which its competitors do not have.
Bitcoin Upside Reflects on 705 Target
The price target of 705 dollars that Benchmark puts on 2026 is based on the combination of a rise in bitcoins, better market sentiment, and subsequent increase as investors will be more comfortable in assessing Bitcoin-filled balance sheets. The target suggests over 360 percent gain on the current prices. The bank bases its prediction on Bitcoin recovering and maintaining more elevated price levels as more institutions and sovereign economies adopt Bitcoin instead of making aggressive assumptions.
The reinstated Buy rating of MicroStrategy by Benchmark strengthens the belief of the company that MSTR is among the best long-term investment vehicles in the Bitcoin exposure of the public markets. Although the stock is volatile in the short term and has been underperforming lately, its discount ratio to the Bitcoin net asset value and its huge BTC holdings offers a strong risk-reward situation. With Bitcoin growing up and institutional investors increasingly adopting it, MicroStrategy is poised to gain more than it has than any other company, making the bullish perspective of Benchmark right up to 2026.