TLDR
- Standard Chartered maintains its Bitcoin price forecast of $100,000 by end-2026
- Strategy’s Bitcoin liquidation sparked market panic due to poor communication, not fundamental weakness
- The company offloaded 3,588 BTC worth approximately $216 million in its biggest sale ever
- STRC preferred shares plummeted to $71.25 on June 26, creating downward pressure on Bitcoin
- BTC bounced back above $64,000, climbing more than 2% during the session
The cryptocurrency market witnessed Bitcoin plunge from $80,000 to $60,000 following Strategy Inc.’s June 1 disclosure revealing it had liquidated 32 BTC during the prior week. The revelation sent shockwaves through trading desks and ignited widespread panic selling.
Geoffrey Kendrick, who leads Digital Assets Research globally at Standard Chartered, dismissed the market’s overreaction. He characterized the downturn as a messaging failure by Strategy rather than any deterioration in Bitcoin’s underlying fundamentals.
Strategy controls 843,775 BTC, securing its position as the world’s dominant corporate Bitcoin holder. The firm had long operated under an unwavering “never sell bitcoin” philosophy, leveraging debt instruments and equity offerings to continuously expand its position.
This approach proved effective while Strategy’s market capitalization, tracked through its mNAV metric, remained substantially above 1.0. The company could issue new shares, acquire Bitcoin, and create more shareholder value than the dilution cost.
Strategy Transforms Its Bitcoin Approach
As mNAV converges toward 1.0, the previous playbook has lost its effectiveness. Strategy now backs STRC—its perpetual preferred stock instrument offering a 12% annual yield—with its Bitcoin treasury.
STRC represents roughly $10 billion in notional value, establishing it as Strategy’s most significant financial product. The security experienced dramatic volatility, plunging to an intraday bottom of $71.25 on June 26 from its $100 par value, before recovering to approximately $90.
Strategy has unveiled a monetization framework allowing periodic Bitcoin sales, including plans to generate up to $1.25 billion for its dividend reserve fund. The company currently maintains $2.55 billion in USD reserves, sufficient to cover dividend obligations for roughly 17.4 months.
Kendrick suggested that transparent communication of this strategy should eliminate concerns about future Bitcoin liquidations. Drawing parallels to central bank credibility mechanisms, he labeled Bitcoin at $64,000 as “a screaming buy.”
Market Analysts Remain Divided
JPMorgan’s research team expressed concern that institutionalizing Bitcoin sales introduces “avoidable two-way risk,” transforming Strategy into both accumulator and distributor of the digital asset.
Zach Pandl, Grayscale’s research director, offered a contrasting perspective. He contended the sales actually fortify Strategy’s financial position and help establish more sustainable price support for Bitcoin.
Strategy’s latest transaction involved selling 3,588 BTC for roughly $216 million, marking the company’s largest single Bitcoin disposal in its history.
As of the latest market data, Bitcoin was changing hands near $63,971, advancing 1.5% over the trailing 24-hour period. Strategy equity traded relatively unchanged at approximately $93.99.
