Benchmark Raises Price Target for MicroStrategy to $705, Maintains Buy Rating

Benchmark has raised MicroStrategy's (MSTR) price target to $705 from $650 and maintained a Buy rating. The company's Q2 performance was notable for its financial results and conference call, where executives outlined their vision to become the world's largest corporate treasury. MicroStrategy operates as a bitcoin treasury company and provides AI-powered enterprise analytics software. Its financial health is mixed, with declining revenue growth, significant profitability challenges, and a low debt-to-equity ratio.

Benchmark analyst Mark Palmer has raised MicroStrategy's (MSTR) price target to $705 from $650, maintaining a Buy rating. The move comes after the company's impressive Q2 performance, highlighted by record-breaking financial results and a conference call where executives outlined their vision to become the world's largest corporate treasury.

MicroStrategy, a bitcoin treasury company and provider of AI-powered enterprise analytics software, reported a net income of $10.02 billion and earnings per share of $32.60 in Q2 2025, significantly exceeding analyst expectations. The company's performance was largely driven by its Bitcoin holdings, which benefited from new record highs earlier in the quarter. Despite the strong earnings, MSTR shares fell 12% due to Bitcoin volatility and profit-taking [1].

During the earnings call, executives emphasized their ambition to become the largest treasury company globally, highlighting their innovative approach to cryptocurrency. Michael Saylor, Executive Chairman, underscored the firm's innovative crypto-financial strategy, while CEO Phong Li targeted treasury growth to exceed that of Microsoft, Google, and Amazon [2].

Palmer's new price target hinges on a projection that Bitcoin will reach $225,000 by the end of 2026. The analyst noted that while the company's earnings were impressive, the real story was the executives' vision for transforming the firm into a long-term profit center. The company is shifting its funding strategy from convertible debt to preferred stock, with a focus on issuing equity only when trading at a premium to asset value [2].

However, MicroStrategy's financial health is mixed. While the company reported strong profitability, revenue growth has been declining, and it faces significant challenges in maintaining profitability. The company's low debt-to-equity ratio suggests moderate leverage as Bitcoin holdings grow [1].

In conclusion, MicroStrategy's Q2 results showcase extraordinary profitability and a bold Bitcoin-driven strategy. However, the stock's movement underscores the high-risk, high-reward nature of the company's trajectory. Sustained share price growth may ultimately depend on Bitcoin's ability to hold new highs and investor confidence in long-term profitability.

References:
[1] https://www.fxleaders.com/news/2025/08/01/microstrategys-record-earnings-overshadowed-by-12-mstr-stock-slide/
[2] https://decrypt.co/333157/benchmark-705-target-strategy-treasury-domination