Standard Chartered stated in its latest report that Strategy’s sale of some Bitcoin to pay the 12% annual dividend on its preferred shares ($STRC) is “more noise than signal,” and reaffirmed its year-end target price of $100,000 for Bitcoin.
The report notes that Strategy sold 3,588 $BTC between June 29 and July 5, raising approximately $216 million, which was used for dividend payments and to bolster cash reserves. Strategy currently holds approximately 843,775 BTC.Standard Chartered added that, since $STRC is “over-collateralized” with Bitcoin and the company has already set aside a dividend reserve of approximately $2.55 billion, large-scale, ongoing $BTC sales may not be necessary in the future—provided communication is effective.[PANews]