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business3h ago
Benchmark Is Bullish on Strategy Even as Stock Plunges Amid Possibility of Selling Bitcoin - Decrypt
- Benchmark reiterates a buy rating for Strategy, maintaining optimism despite the stock's 2025 decline.
- Analyst Mark Palmer says skeptics misunderstand Strategy’s balance-sheet architecture and capital-raising engine.
- Strategy disclosed a $1.44 billion U.S. dollar reserve to provide smooth dividends when Bitcoin is down.
- Benchmark notes Bitcoin would need to drop below about $12,700 to fully impair Strategy’s ability to cover debt.
- Bitcoin price context: BTC traded around $85,779, about 30% below its October high.
- Strategy holds the largest corporate BTC holdings, with about 650,000 BTC.
- Strategy did not rule out selling Bitcoin as part of its financial strategy.
- Market context: Strategy’s stock fell after a period of gains in 2024, affecting investor expectations.
- Analysts cited macro shocks as a prerequisite for a severe BTC-driven debt reversal.
- The Decrypt report notes Market Myriad prediction market expectations for BTC in the next move.
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