Strategy’s plan splits analysts as MSTR and STRC shares rise

Strategy’s recently updated capital framework—allowing the company to raise funds through potential Bitcoin sales—has drawn support from parts of Wall Street even as prominent industry figures questioned whether the change truly strengthens Strategy’s long-term Bitcoin thesis.

On Monday, Benchmark Equity Research reiterated a Buy rating on Strategy’s Class A shares (MSTR) and kept a $570 12-month price target, according to a report reviewed by Cointelegraph. Strategy’s MSTR stock rose about 12.6% to roughly $92.70, while its STRC preferred shares climbed around 12.2% to about $83.70, based on figures cited by TradingView and Yahoo Finance. In Tuesday’s premarket trading, however, both names slipped as skepticism persisted about the durability and implications of the new framework.

Key takeaways

• Benchmark reaffirmed a Buy rating for Strategy’s MSTR and maintained a $570 12-month price target after the company disclosed a revised capital framework.
• Under the update, Strategy authorized potential Bitcoin sales of up to $1.25 billion to raise capital rather than relying solely on equity or debt.
• The approved sale capacity is estimated at about 21,082 BTC, roughly 2.5% of Strategy’s stated 847,363 BTC holdings, according to CoinGecko-linked figures in the reporting.
• Supporters view the shift as a move toward active balance-sheet management; critics argue it may not resolve a perceived market “overhang” and could undermine long-term credibility.
• Strategy has sold Bitcoin before, including a small 2026 sale and a larger 2022 sale tied to a tax-related transaction strategy that was later followed by repurchases.

How Strategy’s capital framework shifted

The core change is the authorization of potential Bitcoin (BTC) sales of up to $1.25 billion. Rather than depending exclusively on issuing additional stock or taking on debt, Strategy can use sales as one capital-raising lever, according to the company’s update referenced by Cointelegraph in earlier coverage: Strategy capital framework preserves Bitcoin exposure.

CoinGecko-linked calculations cited in the reporting place the $1.25 billion ceiling at approximately 21,082 BTC at current prices. That amount is described as about 2.5% of Strategy’s total holdings of 847,363 BTC, based on figures referenced alongside Cointelegraph’s earlier reporting: Strategy’s reserve and BTC accumulation coverage.

Support: more flexibility, less “one-way” exposure

Benchmark’s assessment emphasized that the update addresses concerns investors had raised during a period of heightened volatility. In the firm’s view, the changes provide more flexibility in how Strategy manages its capital structure.

Benchmark’s analysts characterized the shift as transforming Strategy from a “one-way” accumulation vehicle into an active manager that can adjust both sides of its balance sheet—something they called a meaningful positive for shareholders. Benchmark’s report, reviewed by Cointelegraph, argues that the framework gives investors a clearer view of how the company can respond as market conditions evolve.

That interpretation resonated with at least some individual market participants. Investor Simon Dedic suggested the move could represent a local bottom in sentiment around Strategy, implying that earlier fears about the company’s structure may have been overstated. Dedic also proposed that some selling pressure may have been linked to expectations that Strategy was preparing liquidity ahead of the framework update.

What skeptics fear: credibility and market “overhang”

Not all reactions were positive. Trader and investor Scott Melker said the framework appears aligned with what investors have pushed for—such as building a larger cash reserve and adopting a more flexible capital plan—but he cautioned that only time will tell whether the changes genuinely restore confidence.

Melker’s point reflects a key tension in the Strategy debate: even if flexibility reduces the risk of abrupt financial constraints, investors may still worry about whether flexibility translates into sustained belief that Strategy remains primarily a long-term Bitcoin accumulator. The concern is particularly sharp because Strategy has been one of the market’s major Bitcoin buyers.

Arca chief investment officer Jeff Dorman framed the issue differently, arguing that Strategy may need to sell roughly $2 billion to $3 billion worth of Bitcoin to remove a “constant overhang” he associates with the company’s market presence. In other words, the authorization threshold may not be enough—if investors perceive that selling must be large and sustained enough to meaningfully change market dynamics.

Ripple CEO Brad Garlinghouse added another layer to the criticism, saying that “financial engineering doesn’t drive long-term value.” In remarks shared in his public commentary and on CNBC’s “Squawk on the Street,” Garlinghouse argued that Michael Saylor’s team was not focused on what he considers the “right stuff” and that the strategy had hurt the broader market.

Strategy has sold Bitcoin before—so what’s actually new?

The debate is complicated by the fact that Strategy is not new to Bitcoin sales. The reporting points to a small sale in May 2026—selling 32 BTC for $2.5 million—and to an earlier transaction in 2022 in which the company sold 704 BTC as part of a tax-related transaction strategy before later repurchasing a similar amount of Bitcoin, according to an SEC filing cited in the original text: SEC archive.

What appears new in this latest framework is not the fact of potential sales, but the explicit scale and authorization of BTC sales up to $1.25 billion as a capital tool. That distinction matters for traders and long-term holders because the size and repeatability of potential sales affect expectations—whether Strategy is merely managing isolated liquidity needs or signaling a more systematic willingness to monetize Bitcoin under certain circumstances.

Where investors should look next

What will determine whether the framework strengthens Strategy’s case is how the company actually uses (or avoids using) the authorized sale capacity, and whether market participants update their expectations for how much Bitcoin supply could reach the market if conditions deteriorate. Until there’s clearer evidence from subsequent capital actions, skepticism and support are likely to remain split along the same fault line: flexibility versus the durability of a “long-term buyer” narrative.