JPMorgan Warns of Two-Way Market Risk from Strategy's $1.25B Bitcoin Sales Policy

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According to JPMorgan analysts led by Nikolaos Panigirtzoglou, Strategy's decision to sell up to $1.25 billion in Bitcoin introduces avoidable "two-way" risk to crypto markets, CoinDesk reported on July 2. Strategy, the world's largest Bitcoin treasury company, sold 32 BTC for approximately $2.5 million in late May—its first sale since 2022—to fund preferred stock dividends. JPMorgan cautioned that the policy increases uncertainty and volatility, and that Strategy should instead raise its cash reserve coverage to 24-36 months and issue common equity to avoid future Bitcoin sales. The bank noted Strategy purchased roughly $13.7 billion of Bitcoin this year, making its buy and sell decisions significant for broader market dynamics.
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