Wall Street brokerage Benchmark defended MicroStrategy's (MSTR) bitcoin plan and raised the stock's price target to $2,150 - the highest among analysts - even after the company reported a revenue miss during the second quarter.

Since adopting bitcoin as its primary treasury reserve asset in August 2020, Executive Chairman Michael Saylor-led company has appreciated 1,206%, Benchmark’s analyst Mark Palmer wrote in a research report on Friday. The stock's performance, since then, stands in contrast to bitcoin (BTC), the S&P 500 and Nasdaq which have gained 442% 64% and 60%, respectively, he noted.

“While MSTR's approach has had plenty of detractors, including those who have asked why anyone would buy its shares rather than simply buying bitcoin, management has responded to criticism by pointing to the scoreboard,” Palmer, who has a buy rating on the stock, said.

MicroStrategy's shares were down about 1.2% on Friday, relatively outperforming other crypto-linked stocks. The bitcoin price and the broader CoinDesk 20 Index fell more than 3% in the last 24 hours.

Doubling down on its bitcoin strategy, the firm on Thursday introduced "Bitcoin Yield," a key performance indicator that tracks the percentage change in the ratio of the company’s bitcoin holdings to its diluted shares outstanding. The new metric will make it easier for investors to track the firm’s bitcoin strategy's performance, Palmer said.

MicroStrategy’s bitcoin yield year-to-date was 12.2%, the company said on the earnings statement. It targets 4%-8% in each of the next three years.

The firm on Thursday reported a second quarter net loss of $102.6 million as it took an impairment charge of $180.1 million on its bitcoin holdings. It currently holds 226,500 bitcoin which were acquired for an average of $36,821 per token.