Citigroup Lifts Price Target on Strategy to $240 Amid Higher Bitcoin Forecast

Citigroup has revised its price target for Strategy Inc., increasing it to $240 from $136 while maintaining a Buy rating. This decision is based on the bank's updated forecast for Bitcoin, which now predicts the cryptocurrency will reach $113,000 in the next 12 months, up from an earlier estimate of $82,000.

The price target revision follows Strategy's recent purchase of 1,665 BTC between September 21 and 27, increasing its holdings to 847,666 BTC. This move implies roughly a 50% upside for Strategy shares if the underlying assumptions hold.

Citigroup attributes approximately 34% of the modeled upside in Strategy shares to Bitcoin price appreciation and about 16% to an expansion in the multiple of net asset value (mNAV). The bank raised its BTC yield multiple assumption to 4.0 times from 2.5 times, producing an implied mNAV of approximately 1.24 times, up from 1.065 times previously.