Standard Chartered is sticking with its $100,000 Bitcoin target even after Strategy sold 3,588 BTC worth about $216 million. Geoffrey Kendrick, the bank’s global head of digital assets research, said the market turbulence came from a communication problem at Strategy rather than any deterioration in Bitcoin’s underlying case. He described Bitcoin around $64,000 as “a screaming buy.”
Strategy changes how it manages its Bitcoin reserves
Strategy holds custody of 843,775 BTC, keeping its position as the world’s largest institutional Bitcoin holder. For years, the company was closely associated with a “never sell bitcoin” stance, relying on debt and equity issuance to expand its reserves. That model worked well when its mNAV stayed elevated, giving the company room to issue stock at a premium and use the proceeds to buy more Bitcoin.
That setup is now changing as mNAV moves closer to 1.0. Strategy is restructuring part of its Bitcoin management around STRC, a perpetual preferred stock with a 12% annual dividend and roughly $10 billion in notional value. STRC fell from $100 to an intraday low of $71.25 on June 26, and is now trading near $90.
Bitcoin sales are being used to support the dividend reserve
To reinforce its dividend reserve, Strategy has begun a program of periodic Bitcoin sales. The company aims to raise as much as $1.25 billion for that fund. It currently holds $2.55 billion in U.S. dollars, which management says is enough to cover about 17.4 months of STRC dividend payments. The latest transaction, the sale of 3,588 BTC, is the company’s largest single Bitcoin sale so far.
Management has compared its forward guidance to central bank communication, arguing that clearer signals on future Bitcoin sales could reduce uncertainty. The shift matters because Strategy has long been viewed as a persistent Bitcoin buyer. Once a formal selling framework appears, the market has to price in a different role for the company.
Analysts split on the impact of the new framework
Research views are diverging. JPMorgan analysts said a formal Bitcoin sale framework creates “avoidable two-way risk,” since Strategy could end up acting as both a buyer and a seller in the market. Zach Pandl, head of research at Grayscale, took the opposite view, saying the sales could strengthen Strategy’s financial position and may help stabilize Bitcoin’s market value over a longer period.
By the close, Bitcoin had recovered to nearly $63,971, up 1.5% over the previous 24 hours. Strategy shares were trading around $93.99.