Citi Doubles Down on MSTR: $240 Target Sighted as Bitcoin Stays Above $86K 🚀

Strategy shares climbed in premarket trading Friday after Bitcoin extended its recovery above $86,000, following Citi's decision to raise its price target for MSTR stock to $240, up from $136. The upgrade represents a 76% increase from the prior target and signals a potential 64% rally from the current MSTR level near $159.

Citi attributed the revised valuation to two key factors. The bank projects Bitcoin will account for approximately 34% of Strategy's upside over the next year, with an additional 16% tied to an expansion in the company's market net asset value multiple. Citi also increased its Bitcoin Yield Multiple assumption to 4.0x from 2.5x, raising its estimated mNAV to 1.24x from 1.065x. The bank noted that historical mNAV trends have supported a range of 1.25x to 1.50x when Bitcoin trades above approximately $85,000 and moves toward the $90,000 level. Citi raised its Bitcoin price target to $113,000.

The bank maintained a more cautious stance on certain elements of Strategy's approach, citing the company's cash reserve strategy and the dilution associated with building those reserves as points of consideration.

Last week, Strategy expanded its Bitcoin position through the purchase of 1,665 BTC, valued at roughly $142.7 million, at an average price of $85,681 per coin, according to an SEC filing. The acquisition brought the company's total Bitcoin holdings to 847,666 BTC.