Benchmark Reaffirms Buy Rating on MicroStrategy With $705 Target for 2026

Benchmark Company has reaffirmed its Buy rating on MicroStrategy (MSTR), signaling continued confidence in the company's long-term strategy and Bitcoin-based business model according to the report. The firm has also set a 2026 price target of $705 per share, reflecting the potential for substantial growth based on analysis. This comes despite a challenging year for the stock, which has declined significantly amid Bitcoin's volatility as market data shows.

MicroStrategy remains the largest corporate holder of Bitcoin globally, with a total of 672,497 BTC in its portfolio according to TradingView. The company's Bitcoin strategy, led by Executive Chairman Michael Saylor, has positioned MicroStrategy as a leveraged Bitcoin treasury vehicle rather than a traditional software company as research indicates. This approach has drawn increasing attention as more companies consider Bitcoin as a corporate reserve asset as per industry analysis.

The stock is currently trading at a 26% discount to its Bitcoin net asset value, based on Bitcoin prices near $95,000 according to market data. This valuation gap suggests the market may be undervaluing MicroStrategy's Bitcoin holdings compared to its equity price. If Bitcoin's price rises or investor sentiment improves, this valuation difference could narrow rapidly based on current forecasts.

Why Did This Happen?

Benchmark's decision to reaffirm a Buy rating on MicroStrategy is based on its belief that the company's Bitcoin strategy will perform well over the next few years. Bitcoin adoption is expected to increase, and macroeconomic conditions could become more favorable, supporting the firm's long-term thesis.

The investment bank's confidence is also rooted in the current market structure. As more institutions and sovereign economies adopt Bitcoin, investors may become more comfortable evaluating companies with significant Bitcoin holdings as market analysis shows.

MicroStrategy's strategy has also influenced the broader market, encouraging more firms to treat Bitcoin as a digital store of value as industry reports indicate. This shift strengthens MicroStrategy's position as a leader in the Bitcoin treasury space.

What Are Analysts Watching Next?

Analysts are closely monitoring Bitcoin's price movements and institutional adoption trends. Bitcoin currently trades near $87,498, just above a critical support level as technical analysis shows. Technical indicators suggest a possible consolidation pattern, with key resistance and support levels defining the near-term price action according to market data.

The price target of $705 per MicroStrategy share implies a potential 360% gain from current levels according to market analysis. Benchmark bases this forecast on a combination of Bitcoin price recovery, improved market sentiment, and broader adoption of Bitcoin as a corporate treasury asset based on current projections.

Market conditions are also a key factor. With U.S. spot Bitcoin ETFs recording outflows in recent months, analysts are watching how institutional interest evolves in early 2026. Derivatives data shows declining retail exposure, which may indicate a shift toward a more institutional-driven market as market indicators show.

What Are the Risks?

Despite the bullish outlook, MicroStrategy's stock has faced challenges due to aggressive equity offerings and convertible debt used to fund Bitcoin purchases as industry reports indicate. This has led to increased share dilution and pressure on the stock price. The company's market capitalization of $45 billion currently lags behind its Bitcoin holdings, raising leverage concerns.

The company's eligibility for major indexes, including the Nasdaq-100, is also under review. MSCI has expressed concerns about including digital asset-focused companies in its benchmarks and is expected to make a decision in January as market analysis shows. Exclusion could trigger investor outflows and impact MicroStrategy's market perception.

What Does This Mean for Investors?

Investors should consider MicroStrategy as a high-conviction proxy for Bitcoin exposure. The company's strategy offers a unique risk-reward profile, with significant Bitcoin holdings and a valuation that may offer upside potential if Bitcoin's price increases according to market analysis.

However, investors must also be aware of the risks. Short-term volatility and dilution pressures could continue to weigh on the stock, even as long-term prospects improve as industry reports indicate. The company's performance will depend on Bitcoin's price, macroeconomic conditions, and capital market dynamics.

Benchmark's Buy rating and $705 price target reinforce the idea that MicroStrategy could benefit from Bitcoin's continued institutionalization and growing adoption. With the cryptocurrency market still in early stages, investors should monitor developments closely as the year progresses.