Strategy’s new capital framework sparks market divergence, Benchmark maintains its 'Buy' rating.

After Strategy unveiled its new capital management framework, it drew mixed reactions from the market. Benchmark Equity Research reaffirmed its "Buy" rating on Strategy’s Class A common stock (MSTR) and maintained a 12-month price target of $570, noting the new framework will enhance the company’s capital management flexibility. Under the new framework, Strategy is authorized to sell up to $1.25 billion worth of Bitcoin to raise funds when needed, no longer relying solely on equity or bond issuances for financing. At current prices, this equals roughly 21,000 BTC, accounting for about 2.5% of the company’s approximately 847,000 BTC holdings. Strategy previously sold 32 BTC in May 2026 and 704 BTC in 2022 for tax purposes, later repurchasing a similar amount. Benchmark views this move as shifting Strategy from a one-way Bitcoin accumulation model to actively managing both sides of its balance sheet, which helps ease prior market concerns about its capital structure. However, some market participants hold a cautious stance. Arca Chief Investment Officer Jeff Dorman stated that Strategy may need to sell roughly $2 billion to $3 billion worth of Bitcoin to eliminate the market’s long-standing sell-off pressure expectations. Ripple CEO Brad Garlinghouse criticized that over-reliance on financial engineering cannot create long-term value, adding that such strategies have had a negative impact on the broader market.