Strategy buys an additional 450 million USD worth of Bitcoin, Benchmark maintains ‘Buy’ rating

The company #strategy just spent 450 million USD to buy an additional 4,000 Bitcoins, raising the total number of BTC held to approximately 636,500, worth 70.6 billion USD. This transaction was primarily financed through the issuance of common stock, according to a new strategy that allows the company to issue shares when it sees fit.

Analysts' stance

In the context of Strategy's stock price decline and some investors' concerns about this strategy, analysts at investment bank #benchmark have reaffirmed a "Buy" rating and a price target of 705 USD for Strategy's stock. They argue that this new strategy is a "repetitive and opportunistic approach," allowing the company to leverage cheap capital to accumulate Bitcoin. According to Benchmark, Strategy's decision to loosen the stock issuance limits is a necessary move to support its market value and continue its Bitcoin buying strategy.

Future prospects

Analysts also point out that Strategy's potential inclusion in index #S&P500 in the upcoming rebalancing will create billions of USD in passive demand for the company’s stock. Although the S&P Index Committee may consider the specifics of Strategy since their profits depend on Bitcoin prices, this possibility still opens a positive outlook for both the company and the crypto market in general.