JPMorgan said Strategy’s new Bitcoin sales policy adds fresh uncertainty to crypto markets by making one of Bitcoin’s largest corporate buyers a possible seller.
The bank said Strategy’s plan to allow selective Bitcoin sales for preferred stock dividends creates “two-way” flow risk. Strategy recently adopted a broader capital framework that includes a $1.25 billion Bitcoin Monetization Program, preferred stock repurchases, common share buybacks, and a formal cash reserve target.
Strategy holds 847,363 BTC on its balance sheet, making it the largest corporate Bitcoin holder. The company also owns about 4% of Bitcoin’s total supply, giving any change in its buying or selling activity wide market attention.
JPMorgan Flags Two-Way Bitcoin Risk
JPMorgan analysts led by Nikolaos Panigirtzoglou said Strategy’s policy could increase volatility because the company may now sell Bitcoin under certain conditions. The bank said this creates risk that was not needed in the market.
The analysts wrote that Strategy’s policy introduces “two-way” risk into crypto markets. The phrase refers to Strategy acting as both a large buyer and a potential seller of Bitcoin.
The concern follows Strategy’s June 1 regulatory filing, which showed that the company sold 32 BTC between May 26 and May 31 to fund dividend payments. JPMorgan said Bitcoin came under pressure around that period, while wider rate expectations also weighed on crypto and gold.
The bank said Strategy’s size makes the policy important for market liquidity. Even small sales can draw attention because the company has long been seen as a steady Bitcoin buyer.
Bank Says Higher Cash Reserve May Be Needed
Strategy has set a minimum cash reserve target equal to 12 months of preferred dividends and interest expense. Its current $2.55 billion reserve covers about 17 months of obligations.
JPMorgan said this reserve may not be enough to make investors comfortable. The bank said Strategy may need 24 to 36 months of coverage to reduce concerns that it could sell Bitcoin again.
The analysts said Strategy should consider issuing common equity to build cash reserves, even if that means its common stock trades at a discount to net asset value. They argued that equity issuance would reduce the chance of Bitcoin sales.
The bank said stronger reserves could lower uncertainty around Strategy’s future funding plans. It also said lower volatility may help the company raise capital for future Bitcoin purchases.
Strategy Continues Capital Plan
Strategy’s new framework allows Bitcoin sales of up to $1.25 billion to support reserves, dividends, interest, and repurchases. The company has not said it must use the full amount.
The company also authorized preferred stock repurchases and share buybacks. Its plan includes an objective for STRC, its preferred stock, to trade near $99 to $100 over time.
Michael Saylor wrote on X, “As Strategy disclosed Monday: our corporate objective is for STRC to trade over time at $99–$100.” Strategy, in its new program, has also raised STRC’s dividend rate to 12.00% for July 2026 record dates.
Since the announcement, MSTR has been surging with investor optimism rising. As of press time, Strategy shares had moved back above $100 after rebounding more than 23% from last Friday’s low. The recovery came after investors reacted to the company’s capital framework and Bitcoin reserve plans.
JPMorgan said a stronger second half for Bitcoin may depend on Strategy increasing cash reserves and U.S. lawmakers advancing crypto market structure legislation, the CLARITY Act.
