Citi Gives Strategy (MSTR) a “Buy” Rating, Predicts Bitcoin-Linked Stock Could Hit $485

Citi has upgraded Strategy (formerly MicroStrategy) stock (NASDAQ: MSTR) to a “buy” rating with a price target of $485, describing it as a key indicator of Bitcoin’s upside and downside momentum.

In a Tuesday note, the bank said that if Bitcoin (BTC) reaches its 12-month target of $181,000, Strategy’s stock could continue to surge. MSTR closed 1.7% higher at $301.91, according to Yahoo Finance, while its record price of $473.83 was set in 2024. Bitcoin was trading at $111,490, down over 11% from its October all-time high of $126,080, CoinGecko data showed.

Citi added that MSTR’s net asset value (NAV) premium typically ranges between 25% and 35%, consistent with its historical 2.5x–3.5x Bitcoin yield multiple, assuming continued bullish momentum for BTC.

However, the bank also cautioned that MSTR carries significant risk due to its high leverage and near-total correlation with Bitcoin’s price, meaning that even minor BTC declines could amplify shareholder losses.

Founded as MicroStrategy, the company began buying Bitcoin in August 2020 to hedge against inflation and improve returns during the pandemic. Today, Strategy is the largest corporate holder of Bitcoin, with 640,418 BTC worth $71.6 billion, and operates as a Bitcoin securitization vehicle, allowing investors to gain exposure to BTC through its shares.

Co-founder and chairman Michael Saylor continues to advocate for Bitcoin’s corporate potential. The firm recently made its third-smallest BTC purchase of 2025, signaling ongoing, albeit measured, accumulation.

While other companies have followed Strategy’s lead by acquiring Bitcoin and Ethereum to bolster their market appeal, analysts warn that such exposure may not suit every business due to the volatility and risk tied to digital assets.