Citi Upgrades Strategy’s MSTR Stock Price Target To $240 As Bitcoin Rallies Above $86K

Strategy shares moved higher in premarket trading Friday as Bitcoin extended its recovery above $86,000. The gain came after Citi upped its price target for MSTR  stock to $240 up from $136.

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Citi Raises MSTR Stock Target As Bitcoin Outlook Improves

The upgrade in Strategy stock price represents a whopping 76% increase from the previous target. Moreover, it signals a nearly 64% rally from the current MSTR stock price around $159.

Two key factors have driven Citi’s new valuation. The bank believes that Bitcoin will make up approximately 34% of Bitcoin’s upside over the next year. An additional 16% is linked to an increase in Strategy’s market net asset value multiple.

The bank also increased the assumption of its Bitcoin Yield Multiple to 4.0x up from 2.5x. That move raised its estimated mNAV to 1.24x from the previous 1.065x.

Historical trends of mNAVs have justified a wide range of values from 1.25x to 1.50x when Bitcoin is trading above approximately $85,000 and is eyeing the $90,000 level, Citi noted.

The bank, however, still had a more conservative stance. It referred to Strategy’s cash reserve strategy and the dilution of its strategy due to building the cash reserve. Nonetheless, Citi analysts raised their Bitcoin price target to $113,000.

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Strategy Adds 1,665 BTC As Bitcoin Breaks Higher

Last week, Strategy further increased its Bitcoin investment. According to an SEC filing, the company bought 1,665 BTC, valued at some $142.7 million. An average price of $85,681 per Bitcoin was paid for the transaction.

The most recent deal brought Strategy’s BTC holdings to 847,666. The company has acquired approximately $63.95 billion worth of the stash and paid an average price of $75,437 per BTC.

This is the second week in a row that Strategy has bought into Bitcoin after taking a brief break from buying earlier this month. The company previously announced a $75 million transaction that involved 950 BTC.

Michael Saylor’s Strategy also offloaded MSTR stock to buy up Bitcoin. The company sold over 1.46 million shares valued at approximately $246.2 million. This type of financing has gained traction since Strategy’s STRC preferred stock fell below its $100 par value earlier this year.

In the meantime, Bitcoin price has surged to the upside. BTC climbed above $86,000 Friday and stood at $86,803.94 at press time. The rally is also following Citi’s upgrade of its fiscal 2027 Adjusted Bitcoin Yield forecast to approximately 5.9%, up nearly 190 basis points.