CoinDesk
JPMorgan said Strategy's newly formalized bitcoin sales policy introduces avoidable two-way flow risk into crypto markets, urging the company to replace it with common-equity issuance that would lift its dividend reserve to 24–36 months of obligations from the current 17-month buffer. The bank argued the current $2.55 billion cash reserve, set against a 12-month minimum target, leaves Strategy too close to having to sell BTC again if prices weaken.
Why it matters
Strategy has become one of bitcoin's largest single sources of demand, holding 847,363 BTC, roughly 4% of total supply, and buying about $13.7 billion of bitcoin year to date, which JPMorgan estimates is roughly 70% of total net digital asset inflows. A policy that lets the same entity become a periodic seller, even occasionally, converts a one-way bid into a swing factor for the market. The bank pointed to Strategy's June 1 disclosure that it sold 32 BTC between May 26 and May 31 to fund dividend payments, a small amount on paper but one that landed during an already fragile window for spot ETF flows, where June is shaping up as the first month on record with net outflows after a 13-day redemption streak.
Market impact
The structural read from JPMorgan is that Strategy's size now makes its capital structure a market-structure variable: volatility around its preferred dividends raises the cost of future equity and debt issuance, which in turn tightens the cycle that funds further BTC accumulation. The bank sees a path to a stronger second half, but only if Strategy expands its cash buffer to 24–36 months via equity issuance and U.S. lawmakers advance the pending crypto market structure bill. Absent both, the policy keeps two-way supply risk on the table at the worst possible moment for bitcoin's institutional bid.
Frequently asked questions
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What did JPMorgan say about Strategy's bitcoin sales policy?
JPMorgan said Strategy's policy allowing selective bitcoin sales to fund preferred dividends adds avoidable two-way flow risk to crypto markets, and argued the company should finance a larger cash reserve with equity rather than BTC sales.
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How large is Strategy's bitcoin holdings?
Strategy holds 847,363 BTC, roughly 4% of bitcoin's total supply. JPMorgan estimates the company has bought about $13.7 billion of bitcoin year to date, around 70% of total net digital asset inflows.
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What cash reserve level does JPMorgan want Strategy to hold?
JPMorgan wants Strategy to hold 24–36 months of preferred dividend and interest coverage, above the current 17-month buffer backed by a $2.55 billion reserve and a 12-month minimum target.
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Why is a small BTC sale by Strategy significant for the market?
Strategy's June 1 disclosure of a 32 BTC sale between May 26 and May 31 coincided with a fragile window when spot bitcoin ETFs posted a record $4 billion in net outflows, amplifying pressure from a broader repricing of Fed rate-cut expectations.
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What would turn JPMorgan's bearish view into a bullish one?
JPMorgan said sentiment could improve on a contrarian bullish signal if Strategy expanded its cash reserves to 24–36 months via equity issuance and U.S. lawmakers advanced pending crypto market structure legislation.
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