Benchmark and TD Cowen on Monday pushed back against death spiral fears surrounding Strategy Inc. (NASDAQ:MSTR) as the stock surges 8% on Bitcoin’s (CRYPTO: BTC) recovery above $66,000.
Benchmark Says Strategy Has Several Buffers Before Bitcoin Sales Become Necessary
Benchmark analyst Mark Palmer called the death spiral narrative a story that skips several steps.
Strategy’s $1 billion cash reserve must be depleted before any meaningful Bitcoin sales enter the conversation, and the perpetual preferred stock (NASDAQ:STRC) carries no hard maturity date that would trigger accelerated selling.
“The death-spiral story assumes that Strategy is one bad week from selling Bitcoin, and it skips several steps to get there,” Palmer wrote.
“The company would have to move through a long sequence of failures before its Bitcoin reserve, currently valued at almost $55 billion, would even enter the conversation,” he …
