MicroStrategy moves to sell up to $1.25 bn of Bitcoin, drawing JPMorgan caution

MicroStrategy (MSTR) announced a new capital‑management framework that allows the firm to sell Bitcoin holdings worth up to $1.25 billion. The proceeds are intended to strengthen cash reserves and fund dividend payments on its preferred stock as well as possible share buybacks. The company currently holds about 847,363 Bitcoin and has cash reserves of $2.55 billion, enough to cover roughly 17 months of dividend and interest obligations; it aims to maintain a 12‑month liquidity buffer.

JPMorgan analysts warned that the policy creates a "two‑way risk" for the broader market, as large-scale purchases or sales by MicroStrategy can move Bitcoin prices. The firm’s first Bitcoin sale since 2022 – 32 coins for about $2.5 million – coincided with heightened price turbulence in late May and early June. JPMorgan recommends extending the liquidity cushion to 24‑36 months and issuing new equity to raise dollar reserves. The company's stock has fallen about 34 % year‑to‑date, trading near $87, while Bitcoin is down roughly 30 % from the start of the year.