TheBlock
Benchmark reiterated a $570 price target on Strategy, holding its thesis after the company's perpetual-preferred instrument STRC sold off sharply this week. The note pushed back on the price action by spelling out what STRC actually is: a rate-sensitive, dividend-reset preferred, not a stablecoin.
Why it matters
Strategy's capital stack now layers common equity, several series of convertible notes, and the STRC perpetual preferred on top of a bitcoin treasury that itself moves with the underlying asset. When STRC trades below its $100 par, the implied dividend yield mechanically rises, which is the mechanism the market uses to re-price the instrument when common-equity beta to BTC gets uncomfortable. Benchmark's reminder that STRC is not a stablecoin is targeted at retail holders who may have treated the par value as a floor.
Market impact
A reiterated $570 target after a preferred-led wobble is the analyst signalling that the equity thesis (bitcoin treasury plus capital-structure optionality) is unchanged. Watch the STRC bid over the next sessions: a clean recovery back toward par would confirm Benchmark's read, while continued weakness forces the conversation about whether the perpetual layer is doing its job as a funding sleeve or quietly becoming a drag on common-equity holders.
Frequently asked questions
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Why did Benchmark have to remind the market that STRC is not a stablecoin?
STRC is Strategy's perpetual-preferred stock with a $100 par and a dividend that resets with the market price. After it sold off below par this week, Benchmark reiterated its $570 Strategy target and explicitly distinguished the instrument from a stablecoin, a reminder aimed at retail holders treating par as a hard…
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How does STRC actually work in Strategy's capital structure?
STRC is a perpetual-preferred that pays a dividend whose yield floats with the market price of the instrument. When STRC trades below its $100 par, the implied dividend yield rises mechanically, which the market uses to re-price the instrument when common-equity exposure to BTC feels uncomfortable.
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What does Benchmark's $570 price target on Strategy cover?
The target sits on the common equity (ticker MSTR) and reflects the firm's view that the bitcoin treasury plus the layered capital structure (convertibles plus the STRC perpetual preferred) continues to support the balance sheet. Benchmark reiterated it after the preferred-led wobble.
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Could STRC's selloff affect Strategy's bitcoin holdings?
STRC is a funding sleeve above the bitcoin treasury, not a claim on the underlying BTC. A weak STRC print raises the cost of issuing more preferred at the margin but does not directly shrink the treasury. Continued STRC weakness would force a conversation about whether the perpetual layer is funding growth or quietly…
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What signal would confirm or break Benchmark's read from here?
A clean STRC recovery back toward $100 par would confirm that the selloff was mechanical and the preferred layer is functioning. Continued trading below par would force the market to revisit whether Strategy's equity thesis still depends on the perpetual preferred working as designed.
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