JPMorgan warns Strategy's Bitcoin‑sale policy could boost market volatility

JPMorgan Chase analysts said the investment firm Strategy's new policy that permits it to sell Bitcoin to fund preferred‑share dividends introduces two‑way risk to crypto markets. The bank noted that Strategy holds roughly 847,000 Bitcoin – about 4.2% of all coins in circulation – and that selling Bitcoin could add new supply and increase price uncertainty. JPMorgan suggested that issuing additional shares would be a healthier way to raise cash, as the firm’s cash reserves currently cover about 17 months of obligations and would need to extend to 24‑36 months to lessen any pressure to sell Bitcoin.

The analysts also pointed to a recent slowdown in U.S. spot Bitcoin ETF inflows and indicated that any change in the regulatory environment could affect the market outlook. They cautioned that the policy could create unpredictable market dynamics, making it harder for investors to gauge whether large holders are net buyers or sellers.