JPMorgan warns Strategy's dividend funding could force additional Bitcoin sales

MicroStrategy (Strategy) sold 32 Bitcoin, generating about $2.5 million, marking its first sale since 2022. The company faces roughly $1.7 billion in annual preferred‑stock dividend obligations, and JPMorgan analysts say its existing dollar reserves cover only about six months of payouts. JPMorgan cautions that Strategy may need to increase its cash reserves or consider further Bitcoin sales to meet dividend commitments. The bank also notes that the U.S. Digital Asset Market Clarity (CLARITY) Act has less than a 50 % chance of passing this year, removing a potential bullish catalyst for the crypto market. Strategy has earmarked $1 billion for debt and dividend management and recently bought $100 million of Bitcoin to bolster its cash balance, but concerns remain that additional liquidations could weigh on Bitcoin prices. JPMorgan’s more guarded stance reflects broader uncertainty about institutional crypto exposure tied to corporate funding needs.