TLDR
- Benchmark kept its Buy rating and $570 price target on Strategy stock.
- Strategy has paused Bitcoin purchases for five straight weeks.
- Strategy’s Bitcoin holdings remain unchanged at 843,775 BTC.
- The company’s U.S. dollar reserve rose to $3.75 billion.
- Strategy raised $544.5 million from MSTR share sales in the latest week.
Strategy Inc. shares fell as Benchmark Equity Research kept its Buy rating and $570 price target, while rejecting concerns that five straight weeks without a Bitcoin purchase signal a strategy shift.
Benchmark Defends Strategy’s Bitcoin Pause
Benchmark analyst Mark Palmer said Strategy’s latest cash-building activity reflects disciplined capital allocation rather than a move away from Bitcoin. The firm maintained its bullish view ahead of Strategy’s second-quarter earnings release on July 30.
Palmer wrote, “The company has made clear that it remains a long-term buyer of bitcoin while strengthening its balance sheet.” He said the larger cash reserve gives Strategy more flexibility to meet preferred dividend obligations and resume Bitcoin purchases when market conditions improve.
Strategy has raised more than $2.4 billion over the past five weeks without adding new Bitcoin. The company directed proceeds toward its U.S. dollar reserve, preferred share obligations, and balance sheet management.
The latest week added $544.5 million in proceeds from MSTR share sales. Strategy’s reserve rose to $3.75 billion, covering about 2.1 years of preferred dividends and debt interest.
Cash Reserve Grows as Bitcoin Holdings Stay Flat
Strategy’s Bitcoin holdings remain unchanged at 843,775 BTC. The company has not bought Bitcoin for five straight weeks, marking its longest buying pause in two years.
The pause began after the company shifted more attention toward reserve building and preferred stock obligations. Strategy needs about $1.76 billion each year to fund preferred dividends and debt interest.
During the week of June 22 to June 28, Strategy sold 12.67 million shares and raised $1.15 billion. That moved the reserve to $2.55 billion.
From June 29 to July 5, the company sold 3,588 BTC for $216 million to fund dividends. During the following week, Strategy sold 4.82 million shares and raised $466.7 million, lifting the reserve to $3 billion.
From July 13 to July 19, Strategy sold 2.73 million shares and raised $263.5 million. The reserve rose again to $3.225 billion before the latest increase to $3.75 billion.
Strategy also repurchased $25 million of STRC preferred shares during the week ended July 26. Palmer said that purchase showed the company’s Digital Credit Capital Framework operating across multiple parts of the balance sheet.
New Metrics and Earnings Draw Investor Focus
Strategy recently introduced new measures on its website, including Net Reserve, Net BTC, and Net BTC Per Share. The company also revised its mNAV ratio and added BTC Hurdle ARR and BTC Floor ARR.
Palmer said, “A week before the scheduled release of its 2Q26 earnings print, Strategy rewrote the vocabulary by which it asks to be judged.” Benchmark views the new metrics as part of Strategy’s shift toward a broader digital credit structure.
The company now positions itself beyond a Bitcoin accumulator funded mainly through convertible debt. Benchmark said Strategy is becoming a central issuer in an emerging market built around perpetual preferred stock.
Strategy stock recently traded near $95.83, down 2.85% during the session. The stock has fallen about 77% over the past year, while Bitcoin also traded lower.
Other analysts remain focused on Strategy’s capital structure before earnings. Cantor Fitzgerald reiterated an Overweight rating with a $212 target after meetings with Executive Chairman Michael Saylor.
Mizuho lowered its Strategy price target to $213 from $265 but kept an Outperform rating. The firm cited Strategy’s Bitcoin holdings of 843,775 BTC as of June 30.
Distressed-debt funds holding Strategy preferred shares are also discussing a possible swap deal with Moelis & Co. Those talks come as crypto market weakness continues to pressure Strategy’s preferred securities and common stock.
