JPMorgan flags “two-way risk” from Strategy’s Bitcoin policy
The world's largest corporate Bitcoin holder sold 32 BTC to cover dividends, and JPMorgan thinks that small move signals a much bigger problem.
Strategy’s revised capital policy allowing selective Bitcoin sales could create avoidable risks for the crypto market, according to a JPMorgan analysis first reported by CoinDesk.
The bank said the policy introduces “two-way” market flows that could increase volatility given the company’s outsized role as a corporate Bitcoin holder.
JPMorgan said Strategy’s cash reserve, currently sufficient to cover around 17 months of preferred dividend and interest obligations, should be expanded to provide 24 to 36 months of coverage.
A larger reserve, the bank argued, would reduce the likelihood of future Bitcoin sales and provide greater confidence to investors.