Citi Initiates Coverage of Strategy With Buy/High Risk Rating and $485 Price Target
Citi has initiated coverage of Strategy (MSTR) with a buy/high risk rating and a $485 price target, highlighting the company as one of the most leveraged ways to gain exposure to Bitcoin’s potential upside. The investment bank’s report projects Bitcoin could reach $181,000 within the next 12 months — representing a 63% increase from current levels — and says Strategy’s valuation reflects its historical 2.5x to 3.5x correlation with Bitcoin’s performance.
The report portrays Strategy as more than a software firm, positioning it as a digital asset treasury pioneer under Executive Chairman Michael Saylor. Since pivoting to Bitcoin in 2020, Strategy has continued to expand its holdings through convertible debt and equity issuance, transforming itself into a corporate vehicle for long-term Bitcoin accumulation.
In its latest filing, the company disclosed the purchase of another 168 BTC at an average price of $112,051, bringing total holdings to 640,418 BTC. Citi’s analysts believe this structure provides outsized returns in bull markets but note that the same leverage can lead to steep drawdowns if Bitcoin retreats.
By linking traditional capital markets with the digital asset economy, Strategy continues to serve as a real-time case study of how Bitcoin exposure is reshaping corporate finance.
