Shares of Strategy Inc. (MSTR) edged higher on Friday after Standard Chartered reiterated its $100,000 bitcoin price target for end-2026, providing a vote of confidence in the company's evolving digital asset strategy. The bank's global head of digital assets research, Geoffrey Kendrick, argued that recent bitcoin weakness stems from investor uncertainty over Strategy's shifting approach rather than any fundamental deterioration in its financial position.
Standard Chartered Sees Noise, Not Signal
In a research note, Kendrick acknowledged that Strategy's recent actions have created short-term confusion but emphasized that the medium-term outlook for bitcoin remains intact. The comments follow Strategy's largest-ever bitcoin sale—3,588 BTC for approximately $216 million—and the adoption of a new Digital Credit Capital Framework that includes a bitcoin monetization program, a USD reserve, share buybacks, and preferred stock support.
Kendrick described the recent episode as “noise rather than a signal about bitcoin's medium-term direction,” adding that at current levels bitcoin is “a screaming buy.” He maintained that the bank's end-2026 price target of $100,000 remains unchanged.
Strategy Moves Beyond 'Never Sell' Mantra
Strategy, which holds 843,775 bitcoin—over 4% of the total supply that will ever exist—appears to be moving away from its long-standing commitment to never sell the cryptocurrency. Kendrick noted that the company's business model has evolved as its market net asset value multiple declined toward 1.0, limiting its ability to issue shares and acquire additional bitcoin under its previous strategy.
Instead, Strategy is increasingly positioning bitcoin as collateral supporting STRC, its perpetual preferred stock that pays a 12% annual dividend. Kendrick argued that if investors gain confidence in the new framework, Strategy may not need to sell bitcoin at all, comparing the mechanism to a central bank promising to do “whatever it takes” and, through credibility, avoiding intervention altogether.
STRC Pricing Key to Market Sentiment
Investor concern intensified after STRC fell well below its $100 par value, reaching an intraday low of $71.25 on June 26 following Strategy's announcement that it had sold 32 bitcoin the previous week. The preferred security currently trades around $90, while Strategy holds a USD reserve of $2.55 billion, equivalent to roughly 17.4 months of dividend coverage.
Kendrick argued that STRC remains heavily overcollateralized and should eventually trade back toward its $100 par value. The company has also introduced a bitcoin monetization program that allows it to sell bitcoin from time to time and raise up to $1.25 billion to support reserves, dividend payments, interest obligations, and share repurchases.
Analysts Divided on Bitcoin Sales
Strategy's recent sale of 3,588 bitcoin raised approximately $216 million and came alongside an $8.32 billion digital asset loss reported for the second quarter of 2026. JPMorgan analysts said formalizing bitcoin sales introduces “avoidable two-way risk” by making Strategy both a buyer and seller of bitcoin. However, Grayscale Head of Research Zach Pandl disagreed, arguing the sales strengthen Strategy's balance sheet and help bitcoin establish a more durable price floor.
Wall Street remains broadly constructive on the stock despite differing views. Citi maintained a Buy rating and a $260 price target, while Mizuho lowered its target to $213 but reiterated an Outperform rating. For broader market context, see our coverage of Dow Breaches 53,000 as AI Chip Rally Fuels S&P 500, Nasdaq Gains and Bitcoin Stalls Near $62K as Oil Surge, Fed Caution, and Strategy Sales Weigh.
Kendrick concluded that the recent volatility should not change investors' longer-term outlook, describing it as a temporary distraction from bitcoin's medium-term trajectory. For more on related market dynamics, see Strategy Sells $216M in Bitcoin, MSTR Stock Dips 2% Under New Treasury Framework.
This article is for informational purposes only and does not constitute financial advice.
