- Standard Chartered says Strategy’s recent Bitcoin sales have created short-term uncertainty but do not change Bitcoin’s long-term outlook.
- The bank believes Strategy’s new monetization program is more about funding preferred stock obligations than abandoning its Bitcoin strategy.
- Despite recent volatility, Standard Chartered continues forecasting Bitcoin could reach $100,000 by the end of 2026.
Strategy’s decision to begin selling portions of its Bitcoin holdings has raised fresh concerns across the crypto market, but Standard Chartered believes investors may be overreacting.
In a new research note, the bank said the recent sales have complicated Bitcoin’s short-term outlook, yet they should be viewed as temporary market noise rather than a sign that Bitcoin’s long-term bull case is breaking down. The bank continues to project a $100,000 Bitcoin price by the end of 2026, arguing that Strategy’s evolving capital strategy does not fundamentally alter the cryptocurrency’s broader trajectory.
Strategy’s Bitcoin Model Is Changing
For years, Strategy built its business around one simple approach: issue stock, purchase more Bitcoin, and benefit from the premium investors were willing to pay above the value of its Bitcoin holdings.
That model has become more difficult to sustain.
According to Standard Chartered, the company’s market premium has largely disappeared, reducing its ability to raise capital through new equity offerings. At current prices, Strategy’s Bitcoin holdings are worth less than the total amount originally invested, leaving the company with billions of dollars in unrealized losses on paper.
The changing environment has forced Strategy to explore new ways of managing its balance sheet.
Why Strategy Is Selling Bitcoin
Last week, Strategy sold 3,588 Bitcoin for approximately $225 million, using the proceeds to fund dividend payments on its preferred shares and strengthen its cash reserves.
The sale followed a much smaller Bitcoin disposal earlier this year that unsettled investors and triggered renewed concerns over the company’s long-standing commitment to accumulating Bitcoin.
Standard Chartered, however, believes the sales are tied to Strategy’s evolving financing structure rather than any loss of confidence in Bitcoin itself.
Preferred Stock Becomes the Focus
The bank says Strategy is increasingly relying on its perpetual preferred stock, known as STRC, as part of its financing strategy.
The security pays a 12% annual dividend and currently has roughly $10 billion outstanding. To support those obligations, Strategy recently introduced a Bitcoin Monetization Program, allowing the company to sell up to $1.25 billion worth of Bitcoin if necessary.
Although that announcement initially worried investors, Standard Chartered argues the company remains heavily over-collateralized by its Bitcoin holdings and currently maintains approximately $2.55 billion in cash reserves, enough to cover dividend obligations for well over a year.
The bank believes better communication from Strategy could reassure investors and reduce concerns that large-scale Bitcoin sales will become a recurring event.
Long-Term Outlook Remains Positive
While Strategy’s changing approach has introduced additional uncertainty into the market, Standard Chartered believes the company’s actions should not be viewed as a bearish signal for Bitcoin.
The bank argues that Bitcoin’s long-term performance will continue to depend far more on institutional adoption, macroeconomic conditions, and investor demand than on Strategy’s treasury management decisions.
Although traders remain cautious about whether Strategy will eventually resume aggressive Bitcoin purchases, Standard Chartered maintains that the current selling activity does not materially weaken Bitcoin’s long-term investment case.
For now, the bank continues to view the recent developments as a temporary adjustment rather than a structural shift, keeping its $100,000 Bitcoin forecast for the end of 2026 firmly intact.
