Citi Starts Coverage of Strategy (MSTR) with a Buy Rating

Core Viewpoint - Strategy Inc (NASDAQ:MSTR) is recognized as one of the top American AI stocks to buy, with Citi initiating coverage and assigning a Buy rating with a price target of $485, indicating a significant upside potential based on Bitcoin forecasts [1][2]. Group 1: Company Overview - Strategy Inc (NASDAQ:MSTR) is a Digital Asset Treasury (DAT) company that has adopted Bitcoin as its primary treasury reserve asset, holding approximately 3% of all Bitcoin in circulation [2]. - The company plans to continue acquiring more Bitcoin through various financial instruments, including convertible debt, preferred equity, and MSTR stock [2]. Group 2: Analyst Insights - Citi's price target for Strategy Inc is based on a forward 12-month rolling base-case Bitcoin forecast of $181,000, suggesting a 63% upside from current levels [2]. - The firm acknowledges that while Strategy Inc can provide strong returns, it also carries high volatility and risk due to its leveraged position on Bitcoin [2]. - Citi estimates that the net asset value (NAV) premium for Strategy Inc can range from 25% to 25% [2].