Citi still believes in Strategy Inc. Just… a little less than it used to.

On June 30, Citi analyst Peter Christiansen reaffirmed a Buy rating on Strategy Inc. (MSTR), the Bitcoin-accumulation machine formerly known as MicroStrategy, while maintaining a $260 price target. With shares trading around $87 at the time of the call, that target implies roughly 200% upside from current levels.

That is a bold number. It is also the third price target Citi has set on this stock, and the lowest of the three.

A bullish call with a complicated history

When Citi initiated coverage of Strategy in October 2025, the firm set a target of $485. That got trimmed to $325, and now sits at $260, a series of reductions that tracks closely with the broader turbulence in digital asset markets over the past several months.

The reasoning behind the latest reaffirmation centers on a recent update to Strategy’s capital plan. Citi interprets that update as buying the company more runway, specifically more time for its massive Bitcoin holdings to stabilize before the market fully prices them in.

Strategy’s entire business model is built around this bet. The company accumulates Bitcoin at scale, funding those purchases through equity raises and convertible notes rather than traditional operating cash flows. The shares move with Bitcoin, amplified by the financial leverage the company carries.

Why Wall Street keeps buying the thesis anyway

Analyst consensus on Strategy remains broadly positive, with multiple Buy ratings across research firms, though price targets vary considerably depending on how each firm models Bitcoin’s trajectory and the company’s leverage ratio.

The capital plan update Christiansen flagged matters here precisely because leverage cuts both ways. When Bitcoin prices are under pressure, a company carrying significant debt to fund its Bitcoin purchases faces compounding stress. The updated capital plan, as Citi reads it, reduces that near-term pressure and gives the position more time to play out.

What this means for investors watching MSTR

The 200% upside figure is attention-grabbing, but it comes attached to a price target that has already been reduced twice in roughly eight months.

The stock is also not a passive Bitcoin holding. Strategy’s use of convertible notes and equity issuance to fund Bitcoin purchases means shareholders are exposed to dilution risk in addition to Bitcoin price risk. When the company raises capital to buy more Bitcoin, existing shareholders own a slightly smaller slice of the same pile.