Citigroup Slashes MicroStrategy (MSTR) Target Price to $136! Downgrades Long-Term BTC Forecast to $80k, But Still Maintains "Buy" Rating.

Wall Street investment banks have successively acted to downgrade MicroStrategy's valuation! According to a disclosure by well-known financial news account @DeItaone, Citigroup today slashed its target price for MicroStrategy (MSTR), the world's largest Bitcoin holding company, by nearly half from $260 to $136. However, despite simultaneously lowering its 12-month Bitcoin price target to $81,800, Citigroup still maintained a "Buy" rating on MicroStrategy and expressed approval for its latest capital liquidity plan.
(Previous context: MicroStrategy Strategy launches $2 billion capital framework: Buybacks and Bitcoin pledge, can death spiral concerns be resolved?)
(Background supplement: Institutions stop buying! Bitcoin faces a "$4.4 billion supply surplus" crisis, Strategy dumping adds to selling pressure)

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• Citigroup nearly halves MSTR target price but refuses to turn bearish
• Key insights from Citigroup's latest research report
• Lowering long-term Bitcoin expectations but praising MicroStrategy's "capital moat"

Following yesterday's announcement by investment bank TD Cowen to lower the target price for MicroStrategy (ticker: MSTR), another top Wall Street giant, Citigroup, quickly followed suit with an even more dramatic price cut, reflecting traditional financial institutions' heightened vigilance toward current crypto market volatility.

Citigroup nearly halves MSTR target price but refuses to turn bearish

According to the latest tweet from well-known financial news account Walter Bloomberg (@DeItaone) released today (the 1st), Citigroup, in its latest research report, significantly lowered its stock price target for MicroStrategy from the previous $260 by nearly 47% to $136.

This substantial downward revision of the target price sparked over 50k views and discussions in the community. However, it is worth noting that despite the drastic cut, Citigroup did not change its long-term bullish stance and still chose to maintain a "Buy" rating on MicroStrategy. This means Citigroup believes the stock still holds investment value at current levels, but its short-to-medium-term upside potential will be suppressed by the broader market environment.

Key insights from Citigroup's latest research report

| Adjustment Item | | --- | Data Change / Rating | Citigroup Official Interpretation & Rationale | | --- | --- | --- | | MicroStrategy Target Price | $260 ➔ $136 | Follows the expected decline in Bitcoin asset value, recalibrating its premium model, but maintaining a "Buy" rating. | | BTC 12-Month Forecast | Revised down to $81,800 | Expects reduced potential upside for Bitcoin in the future, reflecting recent spot ETF outflows and market realities of supply surplus. | | Company Capital Plan | Positive Evaluation | The updated capital plan strengthens the company's liquidity, buying more time to stabilize the situation. |

Lowering long-term Bitcoin expectations but praising MicroStrategy's "capital moat"

In its report, Citigroup explained that the fundamental reason for the significant reduction in MSTR's target price is its more conservative outlook on Bitcoin's future trajectory. Citigroup set its 12-month target price for Bitcoin at $81,800, explicitly stating that it expects Bitcoin's future gains to shrink.

Despite headwinds in the price outlook, Citigroup highly commended MicroStrategy's recent financial defensive operations. The report specifically noted that MicroStrategy's recently updated capital plan (i.e., authorizing a $1.25 billion Bitcoin monetization plan and rebuilding dollar reserves) greatly "strengthens liquidity." Citigroup believes this capital framework can provide the company with more buffer and time to stabilize, helping it weather the recent sell-off in the crypto market and ensuring that its core competitiveness as a "Bitcoin proxy investment vehicle" remains intact.