Citigroup Doubles Price Target on Strategy Amid 30% Rally

Citigroup has upped its price target on Strategy (NASDAQ: MSTR) to $240, reflecting the stock's impressive 30% surge over the past month. The shares are currently trading at $162.38, outperforming Bitcoin's 9.6% gain during the same period.

Strategy stands out among crypto-linked equities, with its peers posting significantly smaller gains. For example, the iShares Bitcoin Trust ETF (NASDAQ: IBIT) gained 11%, while MARA Holdings (NASDAQ: MARA) rose 16% and Bitmine Immersion Technologies (NYSE: BMNR) advanced 14%. Coinbase Global (NASDAQ: COIN), however, lagged behind with a 7% gain.

Citigroup's $240 target is based on the idea that Strategy's financial leverage will continue to amplify Bitcoin's price movements. However, this same leverage creates significant risk for investors, as preferred dividends and debt obligations remain fixed regardless of Bitcoin's direction.