Strategy Stock Falls Despite Bitcoin's Record Break

Strategy Inc's stock has reversed and is now trading lower on Friday, despite Bitcoin breaking above $87,000 and Citi raising its price target on the stock.

Citi analyst Peter Christiansen raised his price target on Strategy to $240 from $136, citing a revised 12-month Bitcoin forecast of roughly $113,400, up 39%, as the main driver.

The analyst said the new target assumes about 34% of the upside comes from that higher Bitcoin price, with the remaining 16% tied to an expected expansion in Strategy's market-to-net-asset-value multiple, raised to 1.24 from 1.065.

The analyst also revised his FY2027 adjusted Bitcoin Yield estimate about 190 basis points higher, to roughly 5.9%, after cutting his FY2026 estimate to negative 3.3%, which he tied to Strategy's cash reserve build and Bitcoin sales in the third quarter.

Strategy holds more Bitcoin than any other public company on Earth, with a balance sheet carrying 847,666 Bitcoin as of late September.