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. Strategy stock reverses lower. What’s driving MSTR’s pullback? 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 equit
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. Strategy stock reverses lower.
What’s driving MSTR’s pullback? 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. 0x. 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. 34%, its highest intraday level since April 2002. 6% the previous day.
Softer yields reduce the appeal of fixed-income investments, while a less aggressive Fed outlook eases concerns over future financial conditions, dynamics that often benefit assets such as Bitcoin. Given Strategy’s strong correlation with Bitcoin, those favorable macro developments initially helped drive momentum in MSTR shares earlier in the session. Despite the bullish Citi note and the supportive macro backdrop, Strategy shares turned lower as the session progressed, erasing earlier gains. Why Bitcoin’s Price Move Directly Affects Strategy’s Stock Strategy holds more Bitcoin than any other public company on Earth.
Its balance sheet carried 847,666 Bitcoin as of late September. A legacy software business still sits underneath the company, but investors largely look past it. The market treats Strategy’s shares as a stand-in for Bitcoin exposure, which is why the stock tends to rise and fall right alongside the cryptocurrency. 52 at the time of publication on Friday, according to Pro.
com