Strategy's Bitcoin Policy Shift Creates Market 'Noise,' Standard Chartered Says

Uncertainty surrounding a change in how the largest corporate Bitcoin holder, Strategy (formerly MicroStrategy), manages its vast holdings is creating near-term price pressure on the cryptocurrency, according to an analyst note from Standard Chartered. The bank maintained its long-term bullish outlook, however, arguing the market overhang should be temporary.

Strategy's Strategic Shift

In a note to investors on Friday, Standard Chartered analyst Geoff Kendrick highlighted what he sees as a significant pivot for Strategy (MSTR), which holds 843,775 bitcoins—more than 4% of the total eventual supply. The company "appears to be pivoting from its 'never sell Bitcoin' mantra to a more complex approach," the note stated.

This shift is reportedly driven by a decline in the company's mNAV metric, which measures its enterprise value relative to its Bitcoin holdings. According to the bank, this metric has fallen to approximately 1.0 from much higher levels seen between 2020 and mid-2025, diminishing the effectiveness of its previous model of issuing shares to fund Bitcoin purchases.

New Focus on Preferred Stock

Standard Chartered said Strategy is now pivoting to use its Bitcoin reserves as backing for its preferred stock, which trades under the ticker STRC. Kendrick noted that the preferred stock, with roughly $10 billion in notional value outstanding, is "heavily over-collateralised" and should trade back to its $100 par value from a current level of around $90.

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Key takeaways from the analysis include:

• Corporate Holdings: Strategy holds 843,775 BTC.
• Market Share: Represents over 4% of the maximum 21 million Bitcoin supply.
• New Collateral: Bitcoin is increasingly used to back the company's STRC preferred stock.

Market Impact and Outlook

The analyst stressed that effective communication from Strategy's management about this new approach is "key to reassuring markets that wholesale selling is unlikely." If the company successfully signals its intentions, it "should remove the need for MSTR to actually sell any BTC," Kendrick wrote.

Despite the short-term "noise" caused by this uncertainty, Standard Chartered views the recent weakness in Bitcoin's price as a temporary issue rather than a change in its fundamental direction. The bank reiterated its end-of-2026 price forecast for Bitcoin of $100,000.