Strategy Inc. (formerly MicroStrategy) recently broke its “never sell Bitcoin” pledge with rare BTC sales, sparking market jitters. But Standard Chartered has stepped in to calm nerves, dismissing the sell-off as a communication issue rather than a fundamental problem.
Standard Chartered: Selling Is Noise, Reiterates $100K Target
Geoffrey Kendrick, Standard Chartered’s head of digital assets research, said in a new report that Strategy’s Bitcoin sales have been overblown. He noted this is purely a “communication challenge” during a corporate transition and does not reflect deteriorating fundamentals. Kendrick called the current Bitcoin price of around $64,000 a “screaming buy” and maintained the bank’s year-end 2026 target of $100,000.
Ditching 'Never Sell', Strategy Moves to STRC Preferred Stock Backing
Strategy now holds 843,775 BTC, over 4% of total Bitcoin supply. Its old model of issuing equity to buy BTC (mNAV >1) has reached its limit. The firm is now using its Bitcoin stash to back STRC perpetual preferred stock, a $10 billion notional instrument paying 12% annual interest semi-monthly.
After selling 32 BTC on June 1, market confidence shattered, driving STRC as low as $71.25. Last week, Strategy sold 3,588 BTC (worth ~$216 million) for dividend payments and reserve funding. Kendrick sees this as a natural corporate evolution—selling a small portion to fund up to $1.25 billion in reserves is a rational monetization plan.
Effective Communication Key; Wall Street Divided
Kendrick stressed that Strategy still holds $2.55 billion in USD reserves for dividends, covering 17.4 months. If the company clearly communicates its new strategy with a “whatever it takes” commitment, STRC should bounce back to $100 par value. The recent selling is mere “noise” that won’t alter Bitcoin’s long-term bullish trajectory.
Wall Street remains divided. JPMorgan analysts warn that formalizing selling introduces “avoidable two-way risk,” while Grayscale’s research head Zach Pandl backs Standard Chartered, arguing that measured selling strengthens the balance sheet and could create a healthier bottom for Bitcoin. How Strategy navigates this communication crisis could be the key short-term driver for Bitcoin’s price.