Benchmark maintains a Buy rating on the Strategy, stating that the decline in STRC is due to the market's demand for higher yields

According to The Block, Benchmark Equity Research reiterated its buy rating on Strategy (MSTR) and maintained its target price of $570. This target price still has about a 406% upside compared to Friday's closing price of $112.53.

Although Strategy's perpetual preferred stock STRC experienced a significant sell-off last week, dropping to around $83, Benchmark analyst Mark Palmer stated that STRC is not a stablecoin and does not have a Terra/Luna-style reflexive mechanism. Its essence is a perpetual preferred stock, backed by over 847,000 bitcoins (approximately $55 billion) held by Strategy.

Palmer believes that the decline of STRC is not a "de-pegging," but rather a reset of the market's required yield. The company currently has about $1.4 billion in cash reserves, which can flexibly support dividend payments. Benchmark views this sell-off as a stress test of its financing model, rather than a structural deterioration.