Benchmark report: No need to worry about Strategy's solvency

Wall Street brokerage Benchmark stated that the recent Bitcoin price pullback has reignited market concerns about the viability of Strategy, a major Bitcoin holder, but the firm believes these concerns are simply noise that inevitably occurs during Bitcoin's decline. In a report released Monday, analyst Mark Palmer pointed out that critics are conflating short-term volatility with genuine solvency risks, ignoring the logic behind Strategy's balance sheet, which is designed to maximize leverage in Bitcoin. Strategy holds approximately 649,870 Bitcoins (worth $55.8 billion) and is backed by $8.2 billion in ultra-low-cost convertible bonds and $7.6 billion in perpetual preferred stock. Its debt is manageable, and its corporate structure is far more robust than critics claim. The perpetual preferred stock is Strategy's core competitive advantage, distinguishing it from other digital asset holding companies.