PANews reported on October 21st that according to CoinDesk, investment bank Citigroup has initiated coverage of Strategy (MSTR), assigning a Buy/High Risk rating and a $485 price target, positioning the stock as a leveraged bet on Bitcoin. In early trading on Tuesday, MSTR's stock price rose 1.5% to approximately $301.

In a report released on Tuesday, Citi stated that the target price reflects its forecast that Bitcoin will reach $181,000 in 12 months, representing a 63% upside from current levels and a 25% to 35% net asset value (NAV) premium, consistent with Strategy's historical Bitcoin return multiple of 2.5x to 3.5x. Citi analysts believe this structure makes the stock an amplified bet on Bitcoin's performance, with significant upside potential in a bull market and the potential for a significant correction if prices reverse. Citi said that in its most pessimistic scenario, if Bitcoin falls 25% and the NAV premium shifts from 35% to a 10% discount, the stock could lose approximately 61%. The report stated that Strategy expects to continue issuing convertible bonds, preferred shares, and equity to expand its Bitcoin holdings, based on the NAV premium.