Benchmark still gives MicroStrategy a buy rating and predicts that BTC may reach $225,000 in 2026

Odaily reports that Benchmark analyst Mark Palmer has given MicroStrategy a "buy" rating and set a target price of $650 based on his estimate of the company's Bitcoin holdings by 2026, projecting that the Bitcoin price will reach $225,000 by the end of 2026. The analyst is also willing to apply a price-to-earnings multiple to the theoretical gains MicroStrategy has created by issuing stock or bonds to purchase Bitcoin. MicroStrategy has mentioned a so-called "Bitcoin yield" (the ratio of changes in Bitcoin holdings to the number of outstanding shares), which has exceeded 70% this year. However, this "yield" depends on the company selling shares at a premium above the value of its Bitcoin holdings, which is uncertain. The high premium for MicroStrategy in 2024 was a special phenomenon. In 2022 and 2023, the company's share price was almost on par with the value of its Bitcoin holdings, with a premium of around 20% by the end of 2023. If the Bitcoin premium continues to decrease and the Bitcoin price experiences a significant decline, MicroStrategy's share price may face further downside risk. (barrons)