Strategy shares climbed during premarket trading as Bitcoin extended its recovery past the $86,000 threshold. The upward movement followed a decision by Citi to raise its price target for MSTR stock from $136 to $240.
The updated target represents a 76% increase from the previous valuation and points to a potential rally from the stock's price near $159. Citi's revised valuation is driven by two primary factors: the bank projects that Bitcoin will account for roughly 34% of the stock's upside over the next year, while an additional 16% is tied to an increase in Strategy's market net asset value (mNAV) multiple.
Additionally, Citi increased its Bitcoin Yield Multiple assumption to 4.0x from 2.5x, which raised the estimated mNAV to 1.24x from 1.065x. The bank also raised its Bitcoin price target to $113,000 and upgraded its fiscal 2027 Adjusted Bitcoin Yield forecast to approximately 5.9%.
Alongside the financial adjustments, Strategy continued to expand its cryptocurrency reserves. An SEC filing revealed that the company purchased 1,665 BTC for roughly $142.7 million, at an average price of $85,681 per Bitcoin. This acquisition brought Strategy's total holdings to 847,666 BTC, acquired at a total cost of approximately $63.95 billion and an average price of $75,437 per BTC.
To finance its ongoing Bitcoin purchases, Strategy also sold over 1.46 million shares of MSTR stock valued at approximately $246.2 million. As trading continued, Bitcoin stood at $86,803.94.
