Strategy (MSTR) Changes the Fixed Income Game

Michael Saylor's company, Strategy (MSTR), is being positioned as a key player in establishing a new bitcoin-backed fixed income market. Analyst Mark Palmer from Benchmark notes that Strategy’s bitcoin-linked perpetual preferred shares provide the firm with permanent, non-dilutive capital, setting it apart from competitors. Despite recent stock difficulties, Benchmark has maintained its buy rating and a price target of $705, citing the firm’s substantial 640,031 BTC treasury, which dwarfs other corporate holdings. Saylor's strategy hinges on the potential of turning bitcoin into a foundational asset for a fixed income market, akin to how mortgage-backed securities reshaped real estate. The company’s recent STRC offering raised $2.52 billion, indicating strong investor interest. Benchmark anticipates the evolution of a multi-hundred-billion-dollar market for bitcoin-linked fixed income and recognizes Strategy as the market's architect, with projected bitcoin growth shaping investor expectations.

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