Strategy Stock Skyrockets 3.8% on Citi Price Target Hike and Bitcoin Binge
Strategy's stock rose 3.8% in morning trading today after Citi dramatically raised its price target on the shares to $240 from $136, while reaffirming a Buy rating. This move sent the stock surging in premarket and carried the momentum into the regular session.
Citi's revised valuation framework attributes roughly 34% of the projected upside to an anticipated rise in Bitcoin's price and approximately 16% to an expansion in the premium investors assign to Strategy's net asset value relative to its underlying Bitcoin holdings.
The bank also lifted its Bitcoin Yield Multiple to 4.0x from 2.5x.
Strategy recently disclosed the purchase of 1,665 additional Bitcoin for $142.7 million at an average price of $85,681, lifting its total holdings to 847,666 BTC.
This acquisition cemented its position as the dominant corporate Bitcoin holder globally.