Strategy (NASDAQ:MSTR) shares rose 2.7% in pre-market trading on Friday after Citi increased its price target on the stock to $240 from $136.
Citi said its revised valuation incorporates an estimated 34% contribution from a higher Bitcoin price over the next 12 months and approximately 16% from an expansion in Strategy’s multiple to net asset value, or mNAV.
The bank increased its Bitcoin Yield Multiple assumption to 4.0 times from 2.5 times, resulting in a revised mNAV assumption of 1.24 times, compared with 1.065 times previously.
Citi said mNAV trends over the past 12 months indicate a range of 1.25 to 1.50 times when Bitcoin remains above approximately $85,000 to $90,000. However, the bank is using a lower assumption than those historical levels because of Strategy’s cash reserve build, which Citi described as dilutive.
Citi Revises Bitcoin Yield Estimates
Citi also increased its fiscal 2027 Adjusted Bitcoin Yield estimate by approximately 190 basis points to around 5.9%.
At the same time, the bank lowered its fiscal 2026 Adjusted Bitcoin Yield estimate to negative 3.3%.
According to Citi, the negative fiscal 2026 estimate reflects Strategy’s cash reserve build and Bitcoin sales during the third quarter of 2026.
The $240 price target and Citi’s underlying assumptions represent the bank’s estimates and are dependent in part on future Bitcoin prices and changes in Strategy’s valuation relative to its net asset value.
Strategy stock price
