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Citi Initiates Strategy (MSTR) With High-Risk Buy Rating and $485 Target on Bitcoin Call

The bank characterizes the shares as a leveraged bitcoin proxy that could swing sharply as its NAV premium expands or compresses.

Overview

  • Citi’s 12-month target assumes bitcoin reaches $181,000 and that MSTR trades at a 25%–35% premium to net asset value.
  • In a bear case with bitcoin down 25% and the NAV multiple flipping to a 10% discount, Citi projects about a 61% decline in the stock.
  • MSTR gained roughly 1.5%–1.7% on Tuesday to around $301 after the initiation note.
  • Strategy disclosed a purchase of 168 BTC at an average price of $112,051, bringing total holdings to 640,418 BTC.
  • The company continues to fund bitcoin buys through at-the-market preferred stock issuances alongside equity and convertible debt programs.