Citi just took a machete to its price target on Strategy Inc., the company formerly known as MicroStrategy, cutting it to $136 from $260. The bank still rates the stock a Buy.

The reduction is tied directly to Citi’s revised Bitcoin price forecast, which now sits at $81,800. That’s a 27% haircut from the bank’s prior estimate, and since Strategy’s entire thesis revolves around hoarding Bitcoin like a digital-age dragon, the math flows downhill pretty fast.

A target in freefall

Citi initiated coverage of MSTR at $485 back in October 2025. By December, that had been trimmed to $325. Then came a cut to $260 in June 2026. Now we’re at $136, which represents a roughly 72% reduction from where the bank started less than a year ago.

Bitcoin’s gravity pulls everything down

Citi’s new Bitcoin price forecast of $81,800 is doing the heavy lifting behind this target cut. Strategy Inc. holds one of the largest corporate Bitcoin treasuries in existence, which means any movement in the bank’s crypto outlook gets amplified through the company’s stock valuation.

According to the bank’s analysis, this isn’t about the fundamental thesis for crypto collapsing. Instead, it’s about valuation multiples across digital-asset firms getting compressed as the market digests ongoing volatility and shifting expectations for where Bitcoin lands in the medium term.

What this means for investors

Strategy’s stock has effectively become a leveraged bet on Bitcoin. The company’s decision to build a massive Bitcoin treasury transformed it from an enterprise software firm into something closer to a crypto ETF with extra steps and more balance sheet risk.

Strategy isn’t the only publicly traded company with significant Bitcoin exposure, and Citi has noted that valuation adjustments are happening across digital-asset equities, not just MSTR. The company’s new capital plan, which Citi cited as part of its analysis, could also shift the calculus if it meaningfully changes how Strategy finances its Bitcoin acquisitions or manages liquidity.