Riding the Bitcoin Rollercoaster: A Gamble on Stocks

Investing in Strategy, a company heavily invested in Bitcoin, is like riding a rollercoaster. The stock's value goes up and down with Bitcoin's price. Citi, a major bank, thinks Strategy's stock could be a good buy, setting a target of $485 per share. But they also warn that it's a risky bet. Strategy's stock has taken a hit recently. It closed at $302 per share on Tuesday, far from its high of $473. 83 in 2024. Bitcoin isn't doing much better, trading at $111, 490, which is over 11% lower than its October high of $126, 080. Citi predicts Bitcoin could reach $181, 000 in a year. If that happens, Strategy's stock might rise. But if Bitcoin's price drops, Strategy's stock could fall even more. It's a high-risk, high-reward situation. Strategy started buying Bitcoin in August 2020 to protect against inflation and boost returns. Now, it's the biggest corporate holder of Bitcoin, with 640, 418 coins worth about $71. 6 billion. Investors can buy Strategy's shares to get exposure to Bitcoin without buying it directly. But there's a big risk: Strategy's value is almost entirely tied to Bitcoin. If Bitcoin's price swings wildly, so will Strategy's stock. It's a gamble, and not everyone is ready to take it.