Benchmark calls MicroStrategy's BTC accumulation model sustainable

Wall Street investment bank and research firm Benchmark has asserted that MicroStrategy's model of accumulating Bitcoin by selling perpetual preferred stock is sustainable, The Block reported. Benchmark analyst Mark Palmer addressed claims that MicroStrategy's preferred stock product, STRC, resembles a Ponzi scheme, stating that such views misinterpret how the company raises and manages capital. He explained that MicroStrategy's strategy is a deliberate and sustainable model designed to convert long-term demand for STRC dividends into Bitcoin investments. Palmer added that MicroStrategy can, of course, sell a portion of its Bitcoin holdings to cover the preferred stock dividend payments.