Strategy initiated with a Buy at Citi

Citi analyst Peter Christiansen initiated coverage of Strategy (MSTR) with a Buy rating and $485 price target based on Citi’s forward 12-month rolling base-case Bitcoin forecast of $181,000 as well as its views that Strategy’s net asset value premium can range 25%-35%, in line with stock’s historical Bitcoin Yield multiple, assuming continued positive momentum for Bitcoin. Strategy as a Digital Asset Treasury company offers amplified returns on the upside, but can also result in sharp underperformance on the downside, the analyst noted.