Citi has cut its price target on MicroStrategy (MSTR) from $260 to $136, a reduction of nearly 47%. In the same research note, the bank lowered its 12-month Bitcoin target to $81,800, yet kept a Buy rating on the stock.
The move came shortly after TD Cowen also trimmed its target on MicroStrategy. Back-to-back revisions from major Wall Street firms point to a more cautious stance on crypto-linked equities, especially as Bitcoin assumptions are being reset and valuation models tied to corporate BTC holdings face pressure.
Target Cut Sharply, Rating Stays Intact
According to financial news account Walter Bloomberg (@DeItaone), Citi’s latest report delivered a steep reduction in MSTR’s target price. The sharper signal was not only the size of the cut, but the fact that Citi did not drop its positive view. The bank still sees value in the stock at current levels, even if the upside it once modeled is now much smaller.
The source material says the update drew strong attention on social media, with more than 50,000 views. Even with that sharp reset, Citi did not abandon its longer-term bullish stance on MicroStrategy. It simply moved to a more conservative Bitcoin outlook and adjusted the stock accordingly.
Lower Bitcoin Outlook Drove the Valuation Reset
Citi said the main reason behind the MicroStrategy target cut was its weaker expectation for Bitcoin over the next 12 months. The bank now places that target at $81,800 and expects less upside ahead. Its reasoning reflects recent market conditions, including spot ETF outflows and excess supply.
That matters directly for MicroStrategy because the company’s valuation is closely linked to its Bitcoin holdings. Once the projected value of BTC is revised down, any premium model built around those assets also has to be recalibrated, pulling the target price lower.
Citi Backs the Company’s Liquidity Plan
Even while cutting both its Bitcoin forecast and MSTR target, Citi gave a positive assessment of MicroStrategy’s updated capital plan. The report pointed to the company’s authorized $1.25 billion Bitcoin monetization plan and its effort to rebuild U.S. dollar reserves, saying the framework strengthens liquidity.
In Citi’s view, that capital structure gives the company more time and flexibility as the crypto market deals with recent selling pressure. For a listed company widely treated as a Bitcoin proxy, liquidity remains central. Citi’s latest position is straightforward: the bank lowered the valuation anchor, but it did not withdraw support for MicroStrategy’s core investment case.