Standard Chartered Keeps $100,000 Bitcoin Target, Calls Strategy Selloff a 'Communication Challenge'

From Bitcoin Accumulator To Credit Platform

In a research note on Friday, Geoffrey Kendrick, Standard Chartered’s global head of digital assets research said, “I see what is happening at MSTR right now as a communication challenge, nothing more,”

He argued that investors are still adjusting to Strategy’s shift away from its long-standing “never sell Bitcoin” philosophy toward using Bitcoin as collateral to support its growing preferred stock business.

Strategy currently holds 843,775 $BTC, representing more than 4% of Bitcoin’s maximum 21 million supply, Kendrick wrote as reported by The Block.

Kendrick said Strategy’s previous model relied on its stock trading at a premium to the value of its Bitcoin holdings, allowing it to issue equity, purchase more Bitcoin and grow shareholder value.

With that premium now largely gone, the company is repositioning Bitcoin as collateral backing STRC, its perpetual preferred stock that currently pays a 12% annual dividend.

The security has roughly $10 billion outstanding, making it Strategy’s largest financing vehicle.

STRC Price Created Negative Feedback Loop

Concerns intensified after (NASDAQ:) fell well below its $100 par value, touching an intraday low of $71.25 in late June following Strategy’s disclosure that it had sold 32 $BTC.

Although Strategy has since expanded its U.S. dollar reserve to $2.55 billion, representing about 17.4 months of dividend coverage, STRC continues to trade near $90.

Kendrick believes stronger communication around Strategy’s monetization framework would restore confidence and reduce the need for future Bitcoin sales altogether.

He compared the approach to a central bank pledging to do “whatever it takes,” where credibility itself minimizes intervention.

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