JPMorgan Warns Strategy's Bitcoin Sales Policy Introduces Two Way Flow Risk
JPMorgan analysts warned that Strategy's newly approved bitcoin sales policy introduces "two-way flow risk" to crypto markets, potentially increasing price volatility. The bank recommended the company increase its dividend coverage cushion through equity issuance to 24-36 months, up from the current 17 months, rather than relying on bitcoin sales to service preferred dividend payments.
The warning follows Strategy's board authorization to sell up to $1.25 billion in bitcoin, a policy shift that ended its "never sell" stance dating back to 2022. Analysts noted the policy change coincided with shares of the company's preferred stock, $STRC, trading significantly below its $100 par value. CEO Michael Saylor stated the company's corporate objective is for $STRC to trade between $99 and $100 over time to stabilize the capital structure.
From the sources (10 posts)
@cryptorover🚨 STRATEGY JUST APPROVED SELLING UP TO 1.25 BILLION IN BITCOIN. Back in June, the company sold just 32 $BTC. Tiny in size, but symbolic. It broke the never sell stance for the first time since 2022. Bitcoin CRASHED 20%... Now they h
@cryptoroverIs Michael Saylor really back, or is this just a dead cat bounce dressed up as a comeback? $MSTR jumped nearly 13%. But Strategy bought ZERO Bitcoin last week. Instead, it sold another 12.67 million MSTR shares and raised $1.15 billion t
@cryptoroverTHIS IS SHOCKING FOR BITCOIN: In June, Strategy sold just 32 BTC. Tiny, but symbolic. The first sale since 2022. Bitcoin CRASHED more than 20%. Now the board has authorized selling up to 1.25 billion dollars of Bitcoin from time to
@saylorAs Strategy disclosed Monday: our corporate objective is for $STRC to trade over time at $99–$100.
@trustlessstateRT @Bankless: At what price would @jdorman81 actually buy $STRC for a fund? “Not unless this thing gets to 30 or 40¢ on the dollar and you…
@laurashinThis Monday, most people were expecting that Strategy had tapped the ATM, raised a hundred million dollars and maybe did an announcement about the other preferreds trading below par. But what they did was much more comprehensive and strengt
@laurashinDavid Lawant on why this week was marked by stabilization for STRC and SATA even as Bitcoin remains under pressure "STRC was trading at $75 before the announcement. It has recovered to the mid eighties. We are still very far from par. The
@theblockcoTHE BLOCK: JPMorgan analysts say Strategy's new bitcoin sale policy introduces what it calls "two-way flow risk," adding uncertainty and volatility to crypto markets. $MSTR The analysts noted Strategy's current cash reserves cover about 17
@crypto_briefing🚨 JUST IN: JPMorgan warns that Strategy’s new Bitcoin sales policy introduces “two-way risk” to crypto markets, recommending the firm build 24–36 months of dividend coverage through equity issuance rather than selling bitcoin:native https:/
@coindeskUST IN: @JPMorgan warns @Strategy's new $BTC sales policy introduces "two-way risk" to crypto markets, recommending the firm build 24-36 months of dividend coverage via equity issuance rather than selling Bitcoin.