JPMorgan analysts argue Strategy’s bitcoin sales policy creates avoidable uncertainty and advocate for larger cash reserves to stabilize crypto markets.
JPMorgan analysts said Strategy’s new bitcoin sales policy introduces two-way flow risk, increasing volatility in crypto markets. The bank criticized the move as adding unnecessary uncertainty for investors.
Strategy recently formalized a policy allowing bitcoin sales to fund preferred dividends, setting a 12-month cash reserve target. Its current $2.55 billion reserve covers 17 months of obligations, but JPMorgan recommends expanding this to 24-36 months via equity issuance.
Analysts suggested that larger reserves could ease investor concerns about forced bitcoin sales, potentially improving crypto sentiment if combined with regulatory clarity from Congress.