Benchmark and TD Cowen Dismiss MicroStrategy's Death Spiral Risks, Maintain Buy Ratings

BTC2.68%
According to reports from Benchmark and TD Cowen, Wall Street analysts have dismissed concerns over MicroStrategy (MSTR) entering a "death spiral" of selling pressure, maintaining buy ratings despite Bitcoin's recent retreat to approximately $60,000. Benchmark analyst Mark Palmer highlighted multiple buffers protecting the company: roughly $1 billion in cash reserves for dividend payments and $55 billion in Bitcoin holdings. TD Cowen noted that STRC, a perpetual preferred stock with a target price around $100 and approximately 11.5% floating annual yield, demonstrated low volatility during Bitcoin downturns, serving as a stabilizing mechanism for the capital structure.
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