Michael Saylor’s Strategy won support from some Wall Street analysts after unveiling a new capital framework, but the changes also sparked debate over the company’s long-term Bitcoin strategy and sustainability.
Benchmark Equity Research on Monday reiterated its Buy rating on Strategy’s Class A stock MSTR and maintained a 12-month price target of $570, according to a report reviewed by Cointelegraph.
Strategy’s common Class A stock, MSTR, rose 12.6% to about $92.70 on Monday, while its STRC preferred shares climbed 12.2% to around $83.70, according to TradingView and Yahoo Finance.
However, both stocks edged lower in premarket activity on Tuesday as some investors and industry observers remained skeptical about the durability of the new capital model.
What changed in Strategy’s capital framework
With its latest capital framework update, Strategy authorized potential Bitcoin (BTC) sales of up to $1.25 billion to raise capital instead of relying solely on issuing stock or debt.
The amount is equal to roughly 21,082 BTC at current prices, according to CoinGecko, or about 2.5% of the company’s total holdings of 847,363 BTC.
Source: TradingView
While Strategy has long described itself as a long-term accumulator of Bitcoin, the move is not the first time it has sold the biggest cryptocurrency. The company sold 32 BTC for $2.5 million in May 2026 and previously sold 704 BTC in 2022 as part of a tax-related transaction strategy, later repurchasing a similar amount of BTC.
Why Benchmark sees framework as positive
Benchmark argued the new framework addresses the main concerns investors had raised following weeks of volatility, giving the company more flexibility to manage its capital structure.
In the report, the research analysts said the changes transform Strategy from a “one-way” Bitcoin accumulation vehicle into an active manager of both sides of its balance sheet.
Source: Benchmark Equity Research
“The upshot is that Strategy is now an active manager of both sides of its capital structure, an approach that we view as a significant positive for its shareholders,” Benchmark’s analysts wrote.
Related: Grayscale’s Pandl says Strategy should sell $3B Bitcoin to restore confidence
Investor Simon Dedic said the move could mark a local bottom, suggesting that recent concerns around the company’s structure may have been overdone. The Moonrock Capital founder and managing partner also suggested some of the recent selling pressure may have come from Strategy preparing liquidity in advance of the update.
Skeptics question long-term implications
Not everyone viewed the new framework as a positive. Trader and investor Scott Melker said Strategy appears to be making the changes investors wanted to see, including building a larger cash reserve and adopting a more flexible capital strategy.
However, he cautioned that “only time will tell” whether the new framework restores investor confidence, adding that if Strategy has been the market’s main Bitcoin buyer.
Arca chief investment officer Jeff Dorman said that Strategy may need to sell about $2 billion to $3 billion worth of Bitcoin to eliminate a “constant overhang” on the market.
Source: Jeff Dorman
Ripple CEO Brad Garlinghouse also criticized the company’s approach, arguing that “financial engineering doesn’t drive long-term value.” He told CNBC’s Squawk on the Street that Michael Saylor’s team “wasn’t focused on the right stuff” and that the strategy had “hurt the overall market.”
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