Benchmark Slashes Strategy Price Target: Bitcoin Thesis Reset After Brutal Drawdown

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Benchmark cuts Strategy price target as <a href="https://investment-policy.com/btc-usd/">Bitcoin</a> thesis gets reset

Benchmark has lowered its 12-month price prediction for Strategy, a company that holds Bitcoin, from $705 to $570. While still recommending a ‘Buy’ rating, the firm has adjusted its forecasts due to recent significant declines in both Bitcoin’s price and Strategy’s stock value.

Summary

  • Benchmark has lowered its 12‑month price target on Bitcoin treasury company Strategy from $705 to $570, according to a new client note cited in market reports.
  • The investment bank is maintaining its Buy rating, but is trimming upside assumptions after a sharp drawdown in both Strategy’s share price and Bitcoin.
  • The move follows months of volatility in Strategy stock, which Benchmark had previously defended as a sustainable levered play on corporate Bitcoin accumulation.

Benchmark lowered its price target for MicroStrategy (NASDAQ: MSTR) from $705 to $570, as reported on X and confirmed by analyst ratings. While Benchmark still recommends buying the stock, they’ve reduced their price expectation because the stock price has fallen along with Bitcoin from its peak earlier in the year, suggesting less immediate potential for growth.

Benchmark was consistently optimistic about Strategy’s potential. Over the past year, analyst Mark Palmer repeatedly predicted a $705 price target, based on strong growth in Bitcoin. One report highlighted that this prediction relied on Bitcoin reaching $225,000 by the end of 2026. This valuation method considered the value of Strategy’s Bitcoin investments, a projected tenfold increase in profits from Bitcoin by 2026, and the worth of its existing software business.

Despite a significant drop in MSTR’s stock price – falling over 60% from around $457 to near $150 in just six months – Benchmark consistently maintained a price target of $705. They explained in a widely shared report that Strategy should be viewed as a company focused on Bitcoin holdings rather than a typical software business, and that its Bitcoin reserves offered considerable potential gains if Bitcoin’s price were to rise again.

According to data from trackers like BitcoinTreasuries, as of the beginning of the second quarter of 2026, Strategy possesses over 818,000 Bitcoin, significantly more than any other publicly traded company. Because of this large Bitcoin holding, changes in Bitcoin’s price directly impact Strategy’s stock value. This is a key reason why Benchmark is lowering its projected stock price to $570, as the cryptocurrency market re-evaluates its peak potential.

A recent report from Benchmark, highlighted by MEXC, strongly supported Strategy’s funding model for Bitcoin purchases. They argued that using ongoing funds to buy Bitcoin is a viable, long-term approach and dismissed comparisons to Ponzi schemes. Benchmark described Strategy as a leader in corporate Bitcoin adoption, a view they maintain despite a recent adjustment to the company’s target price.

Currently, the $570 price target still suggests Bitcoin could rise significantly from its present value. However, it also indicates that even long-term Bitcoin optimists, like those at Benchmark, are adjusting their expectations to a more realistic outlook. We at crypto.news have been closely monitoring how this shift interacts with actual Bitcoin transactions and the money flowing into Bitcoin ETFs. We’ve also been exploring Strategy’s financial strategy and valuation in recent articles.

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2026-05-06 21:56