Benchmark Company reiterated a Buy rating on MicroStrategy (MSTR). This shows a new level of confidence in the company's long-term plans and approach to business based on Bitcoin. The investment bank also has a 2026 price target of $705 per share, meaning there is significant growth potential. This is even after a difficult year in which Bitcoin's volatility caused its stock price to drop significantly. Benchmark remains bullish, making MicroStrategy a high-conviction agency for Bitcoin exposure in the capital markets.
Bitcoin strategy
MicroStrategy remains the largest corporate Bitcoin holder on the planet. Under the leadership of Executive Chairman Michael Saylor, the company purchased coins at an average price of nearly $66,000 per unit, accumulating a total of 671,000 BTC. With this plan, MicroStrategy is no longer a typical software company, but a financial vehicle powered by Bitcoin. Benchmark's ratings indicate that we believe this strategy will perform better over the next multi-year period as Bitcoin usage increases and the macro environment becomes more favorable.
Stock trading below the net asset value of Bitcoin
Valuation is one of the best cases in favor of bulls (benchmark). Based on the current BTC price of nearly 95,000, MicroStrategy is trading at an estimated 26% discount to Bitcoin's net asset value. What this discount means is that the market is not valuing a company's underlying Bitcoin holdings relative to its stock price. If the price of Bitcoin rises or investors feel better, this valuation gap could decrease the fastest, leading to a significant increase in MSTR stock.
Volatility masks future possibilities
MicroStrategy's stock price has plummeted by approximately 66% over the past year, due in part to fluctuations in Bitcoin prices and the overall risk-off mood in stocks. The company believes that volatility is an asset, but not a weakness when applied to investors who want to take advantage of the asymmetric benefits of Bitcoin's long-term scarcity and institutionalization.
Bitcoin in corporate financial assets
MicroStrategy's approach is impacting a growing number of companies considering Bitcoin as a financial reserve. This trend reinforces the narrative that Bitcoin is being used as a digital store of value rather than a speculative tool. Benchmark believes this change provides a disproportionate advantage in MicroStrategy's favor, given that MicroStrategy already has the scale, brand name, and capital markets experience that its competitors lack.
Bitcoin upside reflects 705 target
Benchmark's target price of $705 for 2026 is based on a combination of Bitcoin's rally, improving market sentiment, and subsequent gains as investors become more comfortable valuing a Bitcoin-filled balance sheet. This target implies an upside of more than 360% from current prices. The bank is basing its predictions on Bitcoin recovering and sustaining higher price levels, rather than making more aggressive assumptions about institutions and sovereign economies.
Benchmark's reinstatement of MicroStrategy's Buy rating reinforces the company's belief that MSTR is one of the best long-term investment vehicles for public market Bitcoin exposure. Although this stock has been volatile in the short term and underperformed recently, its discount to Bitcoin's net asset value and its huge BTC holdings make for a strong risk-reward situation. MicroStrategy is poised to gain more than any other company as Bitcoin grows and institutional investors increasingly adopt it, making the benchmark's outlook bullish through 2026.
