Benchmark Equity Research reiterated its Buy rating and $570 price target on Strategy after the company introduced a five-component capital framework that expands its ability to repurchase securities, monetize bitcoin holdings, and manage capital deployment during periods of market stress.
Strategy shares closed up 12.6% at $92.68 on Monday, according to The Block's MSTR price page. Benchmark's $570 target implies approximately 515% upside from that closing price.
Monday's gain followed Strategy's announcement of its new Digital Credit Capital Framework. The initiative includes a $2.55 billion reserve representing 17.4 months of dividend coverage, a $1 billion common stock repurchase program, a $1 billion preferred share buyback plan across its STRC, STRF, STRD and STRK issues, and board authorization to sell up to $1.25 billion in bitcoin from its 847,363 BTC treasury.
In a note to clients, Benchmark analyst Mark Palmer said the framework formally grants management permission to run Strategy's capital machine in "reverse" when market conditions demand it. That includes repurchasing common and perpetual preferred shares, monetizing bitcoin holdings to meet obligations, and pausing common issuance when the shares no longer trade at a premium to net asset value.
