Strategy Stock Drops Despite Bitcoin Breaking $87,000

Strategy Inc (NASDAQ:MSTR) shares have reversed and are now trading lower Friday. Bitcoin broke above $87,000, with Citi also raising its price target on the stock. Here’s what you should know.

Citi Nearly Doubles its Strategy Price Target

Citi analyst Peter Christiansen raised his price target on Strategy to $240 from $136 while keeping a Buy rating, citing a revised 12-month Bitcoin (CRYPTO: BTC) forecast of roughly $113,400, up 39%, as the main driver. The analyst said the new target assumes about 34% of the upside comes from that higher Bitcoin price, with the remaining 16% tied to an expected expansion in Strategy’s market-to-net-asset-value multiple, raised to 1.24 from 1.065 after Christiansen lifted his Bitcoin Yield Multiple assumption from 2.5x to 4.0x.

The analyst also revised his FY2027 adjusted Bitcoin Yield estimate about 190 basis points higher, to roughly 5.9%, after cutting his FY2026 estimate to negative 3.3%, which he tied to Strategy’s cash reserve build and Bitcoin sales in the third quarter.

Macro Tailwinds Initially Supported Bitcoin-Linked Stocks

The earlier advance in Bitcoin and related equities was reinforced by shifts in the broader macro environment. Bond markets turned favorable for risk assets Friday as Treasury yields retreated and investors further pared back expectations for additional Federal Reserve tightening. The benchmark 10-year Treasury yield eased to 5.25% after earlier climbing to 5.34%, its highest intraday level since April 2002.