Standard Chartered Holds $100,000 Bitcoin Target Despite Strategy Sales

Bank Maintains Long-Term Forecast

Standard Chartered has kept its year-end 2026 Bitcoin price target at $100,000. Geoffrey Kendrick, the bank's global head of digital assets research, described Bitcoin trading near $64,000 as a screaming buy. The bank views recent market moves tied to Strategy as short-term pressure that does not alter the longer-term case for the asset.

Strategy's Evolving Approach

Strategy has shifted from its previous stance of never selling Bitcoin. The company now uses its holdings to back STRC, a perpetual preferred stock that operates like a credit product with a 12% annual dividend. This change created uncertainty in the market after earlier announcements of small sales, leading to a drop in both Bitcoin prices and STRC value.

STRC, with around $10 billion notional outstanding, fell to an intraday low near $71 before recovering toward $90. A dedicated reserve of $2.55 billion covers about 17.4 months of dividends, providing a buffer. Strategy announced a monetization program that could generate up to $1.25 billion through occasional Bitcoin sales to support this structure.

Market Reaction and Recovery

Bitcoin experienced a pullback following Strategy's sales disclosures, falling from higher levels toward the $60,000 range before climbing back above $64,000. Standard Chartered maintains that this weakness stems from investor confusion over the new treasury management rather than any decline in Bitcoin demand or broader fundamentals.

The bank compares effective communication from Strategy to central bank signaling, where clear commitments can stabilize markets without requiring full action. If Strategy conveys its updated model successfully, the need for actual sales could decrease, easing pressure on Bitcoin.

Institutional Context

Other institutions continue to adjust positions. Wells Fargo increased its stake in Strategy while making changes to Bitcoin ETF holdings and options exposure. This activity occurs amid ongoing volatility but aligns with broader institutional engagement in digital assets.

Standard Chartered notes that STRC is over-collateralized by Bitcoin holdings and should move back toward its $100 par value with proper market understanding. This would limit further downward effects on Bitcoin from related selling.

The bank's position stands in contrast to some other views that see added risk from Strategy acting as both buyer and seller. Kendrick treats the recent events as noise in the context of Bitcoin's medium-term path.

Analysts at the bank argue that the distinction between company-specific treasury adjustments and Bitcoin's overall market strength is important. They expect clearer information from Strategy to help restore confidence and reduce volatility tied to these developments.