DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.

Benchmark Capital has slashed its 12‑month price target for Strategy (NASDAQ: MSTR), cutting it from $705 to $570 while maintaining a Buy rating.

The move reflects the firm’s recalibration of Bitcoin expectations following a punishing slide in both the cryptocurrency and Strategy’s stock.

Benchmark’s adjustment marks a notable shift in tone from one of the most bullish investment houses on the company.

Analyst Mark Palmer had long stood by an aggressive model pegged to an assumption that Bitcoin could surge to $225,000 by 2026, anchoring his prior $705 target.

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The updated forecast trims those expectations sharply, signaling that even the most optimistic analysts are beginning to take a cooler view of Bitcoin’s near‑term trajectory.

The decision underscores how tightly tied Strategy’s valuation remains to Bitcoin’s market behavior.

The company, effectively a Bitcoin‑backed treasury vehicle, has seen its stock move almost in lockstep with the cryptocurrency.

As Bitcoin tumbled more than 60 percent from its 2025 highs, Strategy shares followed, wiping out much of the spectacular run‑up that caught investor attention during the previous bull leg.

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Despite the lower target, Benchmark continues to back Strategy’s underlying thesis. In its note, the firm reiterated that the company is not a traditional software operation but rather “a bitcoin‑focused treasury company.”

According to Benchmark, this distinction gives Strategy unique upside potential if the broader digital asset cycle turns higher again.

Third‑party data support just how deep that exposure runs. As of early Q2 2026, the company holds over 818,000 BTC, making it by far the largest publicly listed Bitcoin treasury in existence.

That colossal stash cements Strategy’s identity as a pure‑play corporate proxy on the digital currency.

Benchmark’s model historically valued those holdings through a sum‑of‑the‑parts approach that combined the projected worth of Bitcoin on Strategy’s balance sheet, a multiple applied to expected 2026 Bitcoin‑derived profits, and a remnant valuation for its legacy software line.

With Bitcoin prices retracing sharply this year, the recalibration to $570 reflects not a rejection of that framework but a moderation in its most aggressive price assumptions.

Palmer’s team also went on record defending the company’s financing structure against skeptics.

Strategy has funded much of its Bitcoin accumulation via perpetual‑preferred securities, a model that some critics have derided as risky or unsustainable.

Benchmark disagreed, calling the approach “sustainable” and labeling Strategy “a pioneer, not a pariah, in corporate Bitcoin adoption.”

That continued vote of confidence, even amid a reduced target, suggests Benchmark still views Strategy as a leader in integrating Bitcoin onto a public company balance sheet.

While the near‑term math has softened, the broader conviction that corporate treasuries could hold part of their reserves in scarce digital assets appears intact.

Investors, however, have not been kind in the short run. Strategy’s stock has fallen more than 60 percent from its mid‑2025 highs, trading around $150 in recent sessions.

Those losses have mirrored the broader unwinding across crypto‑linked equities and trust products tied to the digital asset class.

Benchmark maintained in its latest note that the reduced target still implies material upside from current prices. That view aligns with long‑term Bitcoin optimists who see current market malaise as a consolidation phase rather than a collapse of fundamentals.

With exchange‑traded fund flows stabilizing and miners adjusting post‑halving economics, many believe the next directional move will depend on macro liquidity trends rather than retail enthusiasm alone.

For Benchmark, the key question is no longer whether Strategy’s model works, but how soon Bitcoin can reignite momentum. The investment bank’s adjustment to $570 simply narrows near‑term expectations to align with a more cautious cycle assessment.

While sentiment may have cooled, the underlying narrative of Bitcoin as a balance‑sheet asset for corporations remains alive. Benchmark’s revised forecast serves less as a retreat and more as a reminder that even the most steadfast bulls must respect market cycles.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.