Citi has made a significant adjustment to its price target for Strategy Inc., previously known as MicroStrategy, lowering it from $260 to $136. Despite this cut, the bank maintains a Buy rating on the stock. This reduction is primarily influenced by Citi's updated Bitcoin price projection, which now estimates Bitcoin’s value at $81,800, down 27% from earlier predictions. Strategy Inc. has centered its business model on accumulating Bitcoin, making this adjustment impactful for its stock value.
Citi had initiated coverage of Strategy Inc. at $485 in October 2025. This initial enthusiasm quickly diminished, with price targets revised to $325 by December and then to $260 in June 2026. The latest cut to $136 marks a 72% decline from the starting point of less than a year ago.
The revised Bitcoin price forecast is creating downward pressure on Strategy Inc.'s stock. With one of the largest corporate Bitcoin reserves, any shifts in Bitcoin's market perception significantly affect the valuation of the company. Citi's analysis indicates that this situation reflects a broader trend within digital asset firms. Market valuation multiples are compressing amid fluctuations and changing expectations for Bitcoin's price trajectory.
For investors considering their options with Strategy Inc., it’s crucial to note that the company’s stock effectively represents a leveraged investment in Bitcoin. The decision to create a substantial Bitcoin treasury has altered its identity, shifting from traditional enterprise software operations to a model that resembles a cryptocurrency exchange-traded fund, albeit with higher risks associated with its balance sheet.
Strategy Inc. is not the only corporate entity with considerable Bitcoin exposure, and Citi points out that adjustments in valuation are manifesting throughout the digital asset sector. The implications of the firm’s new capital strategy could further influence how it approaches its Bitcoin acquisitions and liquidity management in the future.