Standard Chartered downplays Bitcoin sales made by Strategy

Selling bitcoin was not an option for Strategy. However, the BTC corporate reserves giant broke with its doctrine by selling part of its assets in order to meet its short-term financial obligations. This unprecedented turnaround rekindles the debate on the limits of the accumulation model adopted by listed companies exposed to bitcoin. While the markets are questioning the solidity of this strategy, Standard Chartered provides an analysis which places these movements in a global perspective.

Bitcoin transfers and the monetization framework

Strategy’s operational alignment has undergone a major transformation following the implementation of a structured asset liquidation program. The figures and key decisions are as follows:

• 3,588 BTC were sold between June 29 and July 5, generating an approximate amount of $216 million;
• 32 BTC had already been sold at the beginning of June, a minor but symbolic sale which triggered the company’s worst weekly stock market performance since 2022;
• $1.25 billion in Bitcoin constitutes the maximum sales ceiling formally authorized by the board of directors under the “Digital Credit Capital Framework” unveiled on June 29;
• 843,775 BTC now make up the firm’s total reserves, a quantity which still represents more than 4% of the overall and final supply of the reference crypto.

The implementation of this “BTC Monetization Program” meets an obligation to restructure the company’s cash flow. The capital thus raised was specifically allocated to financing dividends linked to its perpetual preferred shares, while making it possible to replenish a liquidity reserve in fiat currency amounting to 2.55 billion dollars as of July 5.

In a research note, Standard Chartered analyst Geoff Kendrick put the negative impact of these transactions into perspective. He has asserted that the bank perceives these sales as “noise rather than a signal” regarding the medium-term trajectory of the asset. Despite these unprecedented sales which alter the perception of the firm’s conservation policy, Standard Chartered has chosen to keep its price forecast for bitcoin unchanged, reiterating its price target set at $100,000 for the end of this year.

The collapse of mNAV and the technical crisis of preferred shares

This situation highlights the difficulties of an economic model which historically relied on the modified net asset value (mNAV) premium. When the company’s common stock traded at a substantial premium to the value of its crypto holdings, Strategy could issue new securities to acquire bitcoin, a dynamic that simultaneously boosted its own capitalization and the price of the underlying asset.

However, current data demonstrates the complete drop in this premium. Standard Chartered estimates mNAV at a ratio close to 1 based on enterprise value, while specialist tracker BitcoinTreasuries values ​​the stock at around 0.7 times the diluted value of its bitcoins, materializing a one-third discount. On a purely accounting level, the total reserve of bitcoins acquired for a total amount of $63.7 billion now only displays a valuation of $54 billion at current market conditions, forcing Strategy to record a loss of $8.3 billion on its assets during the last quarter, although this remains almost entirely unrealized.

The technical viability of this strategic pivot now depends on the stabilization of the financial instruments issued by the company, in particular its perpetual preferred shares (STRC). Representing a nominal amount outstanding of around $10 billion and backed by an annual dividend rate of 12%, these shares were subject to marked selling pressure. Following the first disclosure of bitcoin sales, STRC stock recorded an intraday low of $71.25 on June 26, moving away from its par value benchmark of $100.

Analyzing this reaction, Geoff Kendrick pointed out that “the market has not yet been fully convinced by this pivot”while insisting that transparent communication remains “essential to reassure markets that a massive sell-off is unlikely”. The banking expert recalls that the title remains “heavily over-collateralized” by the underlying bitcoins, suggesting that a stabilization of the STRC price towards its peer would reduce the need for Strategy to continue selling into the spot market.

Market outlook and operator skepticism

The long-term implications of this paradigm shift prompt a cautious assessment of the future balances of the crypto market. In terms of prices, bitcoin stands at around $64,000, posting a weekly increase of 3.8% which masks an annual correction of 42% and a gap of 49% compared to its historic record of October 2025 set at $126,080. Operators are showing marked skepticism about the company’s ability to resume its intensive purchasing waves in the near future.

If Strategy’s doctrinal reversal legitimately troubled a community accustomed to uncompromising accumulation, Standard Chartered’s position reminds us that the fundamentals of the Bitcoin network are not altered by internal treasury adjustments. The over-collateralization of Stretch shares and the accumulated liquidity cushion offer the company the time necessary to stabilize its financial structure without saturating the order books.

Going forward, the success of this transition will depend on the ability of leaders to maintain impeccable clarity of communication. The evolution of the price towards the target of 100,000 dollars will depend less on Strategy’s tactical sales than on the capacity of institutional markets to absorb this new monetization model without giving in to panic.