Intelligence Brief
JPMorgan believes Strategy’s new Bitcoin sales policy could introduce an additional source of market volatility by turning one of Bitcoin’s largest buyers into an occasional seller.
The bank argues that the company should rely on equity issuance to build larger cash reserves rather than selling Bitcoin to meet preferred stock obligations.
Why It Matters
Strategy recently approved a policy allowing selective Bitcoin sales to fund preferred dividend payments while maintaining a minimum cash reserve equal to 12 months of financing costs.
JPMorgan believes that buffer should be closer to 24 to 36 months, reducing the likelihood that the company would need to sell Bitcoin during periods of market weakness.
The concern is less about the size of individual sales and more about expectations. Once markets begin pricing in the possibility of future sales, uncertainty around supply increases.
Market Impact
Strategy now holds 847,363 BTC, roughly 4% of Bitcoin’s circulating supply, making it one of the largest corporate holders in the market.
According to JPMorgan, the company has accounted for roughly $13.7 billion in Bitcoin purchases this year, representing around 70% of estimated net digital asset inflows.
If a buyer of that scale begins selling, even selectively, it changes the market’s supply-demand balance.
The warning comes as spot Bitcoin ETFs recorded $4 billion in net outflows during June, leaving institutional demand noticeably weaker than earlier this year.
Intelligence Assessment
Strategy has become one of Bitcoin’s largest sources of demand over the past several years.
JPMorgan’s concern is that introducing periodic sales creates uncertainty that did not previously exist.
For Bitcoin, the question is no longer just how much Strategy can buy. Markets may also begin asking under what conditions it could sell.
