Citi Boosts Strategy Price Target to $240 on Higher Bitcoin Forecast

Citi has raised its price target for Strategy (MSTR) to $240 from $136, maintaining a Buy rating. This revision follows Citi's higher Bitcoin forecast, with the bank now expecting BTC to reach approximately $113,400 over the next 12 months.

The new MSTR target represents a 76.5% increase from Citi's previous $136 estimate. With Strategy closing around $160.50 on Oct. 1, a move to $240 would require roughly another 49.5% gain.

Citi sees about 34% of MSTR's potential upside coming from Bitcoin appreciation. The bank's valuation framework splits that potential upside between a higher Bitcoin price and an expansion in the premium investors are willing to pay for Strategy relative to its underlying BTC holdings.