Investment bank Citi has begun coverage of Strategy (MSTR) with a Buy/High Risk rating and a $485 price target, positioning the stock as a highly leveraged play on the future price movements of Bitcoin (BTC).
The bank’s bullish forecast is rooted in its expectation that Bitcoin will reach $181,000 within 12 months—a roughly 63% increase from the time of the report. Citi’s $485 target is based on this Bitcoin outlook combined with Strategy’s historical Net Asset Value (NAV) premium, which typically ranges between 25% and 35% over its Bitcoin holdings.
Citi analysts described the company’s shares as an “amplified play” on Bitcoin, meaning the stock tends to magnify Bitcoin’s gains during bull cycles but is also exposed to steep losses during reversals. The report warned that in a bear-case scenario, the stock could lose about 61% of its value.
The bank credited Executive Chairman Michael Saylor for the 2020 pivot that transformed Strategy from a software firm into a de facto Bitcoin holding vehicle—a model involving the issuance of debt and equity to continually expand its Bitcoin reserves. Just before the report, the company had acquired an additional 168 BTC, bringing its total holdings to 640,418 BTC, solidifying its position as one of the world’s largest corporate Bitcoin holders.
The bottom line, according to Citi, is that Strategy is a high-risk, high-reward investment for those betting on Bitcoin’s long-term appreciation, serving as the most direct equity exposure to Bitcoin in public markets.
October 2025, Cryptoniteuae
