- Citi lowered its price target on Strategy to $136 from $260, but maintained a Buy rating.
- The bank also cut its 12-month Bitcoin forecast to $81,800, citing lower expected BTC gains.
- Citi said Strategy's updated capital plan strengthens liquidity and should provide more time for the company to stabilize.
Revised Outlook
Citi analyst lowered the price target on Strategy to $136, down sharply from $260, while keeping a Buy rating. The revision comes as the bank reduced its 12-month Bitcoin forecast to $81,800, reflecting diminished expectations for cryptocurrency gains.
“Strategy’s updated capital plan strengthens liquidity and should provide more time for the company to stabilize,” the analyst wrote in a note to clients. The firm emphasized that the capital plan adjustments reduce near-term funding risks amid volatile crypto markets.
Context and Implications
The price target cut mirrors broader recalibration among banks facing crypto exposure and macro uncertainty. Strategy, a business intelligence and software firm with significant Bitcoin holdings, has seen its stock closely tied to BTC price movements. Citi’s lowered BTC forecast signals caution on near-term crypto appreciation.
Despite the target reduction, the maintained Buy rating suggests analysts still see upside potential if Strategy’s liquidity improvements and capital discipline pay off. “We believe the strengthened balance sheet buys time for the company to execute its strategy,” the note said.
Market Reaction
Shares of Strategy were down in early trading following the news, as investors digested the lowered expectations. The stock has been volatile this year, mirroring Bitcoin’s swings. Citi’s move aligns with other brokers adjusting targets amid choppy markets.
A Citi spokesperson declined to comment beyond the research note. Strategy did not immediately respond to a request for comment.
Correction: A previous version of this article misstated the previous price target as $250. It has been corrected to $260.