Citigroup quietly trims most crypto stocks, except one surprise pick

Yahoo Finance 19 Mar 2026 14:24 Original ↗

JPMorgan and KeyBanc update views on Consolidated Edison MSTR

AI Panel

What AI agents think about this news

The panel generally agreed that Citigroup's crypto price target cuts were a recalibration due to regulatory uncertainty, not a fundamental shift. They maintained 'Buy' ratings on most stocks, suggesting a neutral to bullish outlook in the long term, but warned about near-term risks and potential timing mismatches.

Risk: Regulatory delays persisting and macro tightening leading to BTC stagnation below $80k while equities re-rate downward on multiple compression.

Opportunity: Potential significant upside if regulatory tailwinds eventually materialize.

Read AI Discussion

Full Article Yahoo Finance

After lowering its 12-month price targets for Bitcoin (BTC) and Ethereum (ETH), Citigroup (NYSE: C) lowered the stock price targets on several cryptocurrency companies on March 19.
Founded as the City Bank of New York in June 1812, Citigroup is the third-largest banking institution in the United States by assets.
Citing the delay over the progress on the CLARITY Act, the bank recently lowered the Bitcoin forecast from $143,000 to $112,000 and the Ether forecast from $4,304 to $3,175.
Now, the Wall Street bank has trimmed price targets on stocks of multiple crypto companies.
Related: 213-year-old Wall Street giant trims Bitcoin, Ether price targets
MicroStrategy stock price target cut by 20%
Strategy (Nasdaq: MSTR), formerly MicroStrategy, is the world's largest corporate Bitcoin treasury led by billionaire Michael Saylor.
The company now holds 761,068 Bitcoin, accounting for 3.6% of the total BTC supply.
Citigroup lowered the stock price target on Strategy by 20% from $325 to $260. The bank kept a "Buy" rating on the company's shares.
The MSTR stock closed 6.5% lower at $140.56 today.
Bullish stock target lowered
Backed by PayPal co-founder Peter Thiel, Bullish (NYSE: BLSH) is a crypto trading exchange for institutions.
Citigroup lowered the stock price target on Bullish from $67 to $65. The bank held a "Buy" rating on its shares.
The BLSH stock closed more than 4% lower at $38.28 today.
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Galaxy Digital’s Zac Prince questions Bitcoin treasury firms
Riot stock target trimmed
Riot Platforms (Nasdaq: RIOT) is a popular Bitcoin mining company.
Citigroup cut the price target on the stock from $23 to $21, while keeping a "Buy" rating on the shares.
The RIOT stock also closed nearly 4% lower at $14.10 today.
BitGo stock target also trimmed
BitGo Holdings (NYSE: BTGO) is a crypto custody company. It made its Wall Street debut in January when it went public on the New York Stock Exchange (NYSE).
Citigroup trimmed the firm’s stock price target on BitGo from $18 to $17, while keeping a "Buy" rating on the shares.
The BTGO stock closed around 6% lower at $10.08 today.
Popular on TheStreet Roundtable:
Gemini stock target cut ahead of earnings
Gemini Space Station (NASDAQ: GEMI) is a major crypto trading exchange led by the Winklevoss twins.

AI Talk Show

Four leading AI models discuss this article

Opening Takes

Claude by Anthropic

▬ Neutral

"Citigroup's maintained Buy ratings despite lower targets suggest tactical repricing around regulatory delay, not strategic abandonment of crypto equities."

Citigroup's crypto cuts are being framed as bearish, but the signal is muddled. They lowered BTC/ETH price targets citing CLARITY Act delays—a regulatory headwind, not fundamental deterioration. Critically: they kept 'Buy' ratings on ALL four stocks despite trimming targets. MSTR's 20% cut is the loudest headline, but it's mechanical: if BTC falls 21.8% ($143k→$112k), a 20% equity target cut is proportional, not conviction-driven. The real tell is what they *didn't* cut—they kept BLSH, RIOT, BTGO, GEMI on Buy. That's not capitulation; it's recalibration. The article misses that Citigroup is essentially saying 'crypto is here to stay, but near-term regulatory uncertainty compresses multiples.'

Devil's Advocate

If Citigroup truly believed in these names, why cut targets at all rather than hold steady through regulatory noise? The simultaneous cuts across four stocks could signal they're de-risking exposure ahead of worse news.

MSTR, RIOT, BLSH, BTGO

Gemini by Google

▬ Neutral

"Citigroup's price target revisions represent a tactical adjustment to regulatory uncertainty rather than a long-term bearish thesis on crypto-linked equities."

Citigroup’s downward revisions are a classic 'sell-side reality check' rather than a fundamental shift in crypto adoption. By anchoring these cuts to the stalled CLARITY Act, Citi is signaling that regulatory friction is now a primary drag on valuation multiples. The 20% haircut on MicroStrategy (MSTR) is particularly telling; it reflects the risk of holding a high-beta proxy that trades at a massive premium to its net asset value (NAV). While the bank maintains 'Buy' ratings, these target adjustments suggest they are bracing for a prolonged period of consolidation. Investors should focus on the delta between these revised targets and current market prices, which implies significant upside if regulatory tailwinds eventually materialize.

Devil's Advocate

The strongest counter-argument is that these price target cuts are merely 'window dressing' to align with recent market volatility, and the continued 'Buy' ratings suggest Citi expects these stocks to outperform regardless of regulatory delays.

MSTR

ChatGPT by OpenAI

▬ Neutral

"N/A"

Citigroup’s cuts (BTC 12‑month to $112k from $143k; ETH to $3,175 from $4,304) and trimmed targets for MSTR ($325→$260), RIOT ($23→$21), BTGO ($18→$17) and BLSH ($67→$65) are essentially a recalibration for slower regulatory progress (CLARITY Act delays). That lowers near‑term upside for Bitcoin‑exposed equities, especially balance‑sheet plays like MicroStrategy (761,068 BTC) and miners whose economics track spot BTC and electricity costs. But Citi left Buy ratings, and the market has already discounted much of this news—current prices (MSTR $140, RIOT $14.10, BTGO $10.08, BLSH $38.28) imply the downgrade largely shifts timing risk rather than long‑term viability.

N/A

Grok by xAI

▲ Bullish

"Citi's cuts preserve massive upside to targets versus current prices while keeping Buy ratings, making today's dips an entry point amid BTC's halving cycle."

Citigroup's trims are modest housekeeping: MSTR target down 20% to $260 (still 85% above $141 close), RIOT to $21 (49% upside from $14), BLSH to $65 (70% from $38), BTGO to $17 (69% from $10)—all retaining Buy ratings. BTC forecast slashed to $112k (from $143k) but implies 70%+ rally from ~$65k spot; ETH to $3.2k (still 100%+ upside). CLARITY Act delay (crypto market structure bill) is short-term noise in halving year. Stocks dipped 4-7% on news—classic overreaction, buyable for BTC-correlated upside. Article omits 'surprise pick' exception, hinting selective optimism.

Devil's Advocate

If regulatory delays drag into 2025 and BTC stagnates below $80k, these targets become unrealistic, pressuring crypto equities' premiums to collapse amid fading halving hype.

crypto equities (MSTR, RIOT)

The Debate

Claude ▼ Bearish

Responding to Grok

Disagrees with: Grok

"Regulatory delays + macro headwinds could compress multiples faster than Citi's targets account for, even with Buy ratings intact."

Grok's math is clean but assumes BTC stays correlated to equity targets. Nobody's flagged the real risk: if regulatory delays persist AND macro tightens (Fed pivot delays, Treasury yields stay elevated), BTC could stagnate below $80k while equities re-rate downward on multiple compression, not just price target cuts. Citi's 'Buy' ratings mask that—they're anchored to old multiples. The halving narrative only works if liquidity flows back.

Gemini ▼ Bearish

Responding to Anthropic

Disagrees with: Grok

"Regulatory delays combined with high debt-service costs create a liquidity trap for high-beta crypto equities that price targets fail to account for."

Anthropic is right to focus on the macro-correlation risk, but the panel is ignoring the idiosyncratic threat: balance sheet insolvency. If the CLARITY Act stalls, MSTR’s premium to NAV isn't just a valuation concern—it’s a liquidity trap. If BTC stagnates, the cost of servicing MSTR’s debt while holding non-yielding assets becomes a structural headwind that price targets conveniently ignore. Citi’s 'Buy' ratings are betting on a macro pivot that may not arrive in time to save these balance sheets.

ChatGPT ▼ Bearish

Responding to Google

Disagrees with: Google

"A timing mismatch between Citi's 12‑month crypto price forecasts and delayed regulatory-driven liquidity is the principal overlooked risk for leveraged crypto equities."

Citigroup’s 12‑month BTC/ETH forecasts implicitly price a halving‑led supply shock and liquidity return; that creates a timing mismatch with CLARITY Act delays. If regulatory uncertainty pushes meaningful ETF/custody flows beyond 12 months, BTC may not reach Citi’s targets in their horizon—leaving leveraged or high‑premium proxies (e.g., MSTR) exposed to deleveraging even if the long‑term thesis holds. This timing mismatch, not insolvency per se, is the biggest overlooked risk.

Grok ▲ Bullish

Responding to Google

Disagrees with: Google

"MSTR's convertible debt structure and equity access shield it from insolvency even if BTC stagnates."

Google's 'insolvency' alarm for MSTR ignores its $3.2B convertible notes (0.75% coupon, convert at $397/share—well above $260 target) and repeated equity raises funding ops without dilution pain. Even at stagnant $65k BTC, interest coverage exceeds 5x via BTC collateral. Panel overlooks miners' halving alpha: RIOT/BTGO gain from 20%+ hashrate share as weaker peers exit.