Key facts
- MicroStrategy has shifted its strategy to selling Bitcoin to fund dividends and cash reserves.
- The company recently sold $216 million in Bitcoin, reducing its holdings.
- Standard Chartered analysts believe MicroStrategy's communication of this strategy needs clarity.
- MicroStrategy's preferred shares have hit a one-year low, and common shares have fallen over 70% since July 2025.
- MicroStrategy is set to report its second-quarter earnings on July 30.
Standard Chartered analysts have expressed concerns that MicroStrategy's recent strategic shifts and communication surrounding its Bitcoin holdings are creating near-term uncertainty for the cryptocurrency. Michael Saylor, MicroStrategy's founder, has been signaling changes in the company's approach, moving away from its long-standing 'never sell Bitcoin' policy.
In recent weeks, MicroStrategy has begun selling Bitcoin to fund dividends for holders of its STRC preferred stock and to bolster its cash reserves. The company recently sold $216 million worth of Bitcoin, reducing its total holdings. This pivot was accompanied by the unveiling of a capital framework that allows for Bitcoin sales to support dividends, alongside an increase in the annual dividend rate for its STRC preferred stock to 12%. The company also reported its US dollar reserve had grown to $2.55 billion.
Geoff Kendrick, Standard Chartered's global head of digital assets research, noted that the company's actions and Saylor's communication style are "muddying the waters for BTC near-term." He emphasized that clear communication of MicroStrategy's new strategy is crucial for reassuring markets and preventing wholesale selling, which could, in turn, support Bitcoin prices. Kendrick suggested that effective signaling might eliminate the need for actual sales by bolstering the STRC's price.
Kendrick also pointed out that the "never sell" approach previously limited the utility and perception of MicroStrategy's significant Bitcoin holdings. He acknowledged that the company has started to shift its communication and has sold Bitcoin twice, also announcing a monetization program. Standard Chartered maintains its year-end forecast for Bitcoin at $100,000.
Investors in MicroStrategy have faced challenges. The STRC preferred shares, designed to hold a $100 par value, recently fell to their lowest point since their introduction a year ago. The company's common shares, trading as MSTR, have experienced a significant decline, losing over 70% of their value since July 2025, closing at $94.64 on Friday, down from a 52-week high of $457.22. MicroStrategy is scheduled to report its second-quarter earnings on July 30, with analysts projecting $4.28 per share. Historically, the company's earnings have missed analyst forecasts in six of the last eight quarters.