JPMorgan · Strategy · US Congress · Wall Street · CoinDesk
JPMorgan confirms Strategy's bitcoin sales policy rolls out 'two-way risk' to crypto markets
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Wall Street bank JPMorgan (JPM) said Strategy's (MSTR) decision to allow selective bitcoin BTC $ 60,449.94 sales to fund preferred stock dividends has introduced avoidable "two-way" risk into crypto markets, increasing uncertainty and volatility.
Key facts
- The bank said bitcoin came under pressure in late May and early June after Strategy disclosed in a June 1 regulatory filing that it sold 32 BTC between May 26 and May 31 to fund dividend payments
- Its current $2.55 billion reserve covers roughly 17 months of obligations
- JPMorgan noted that Michael Saylor's Strategy has become one of bitcoin's largest buyers, purchasing roughly $13.7 billion worth of the cryptocurrency year to date, about 70% of the bank's estimate
- Wall Street bank JPMorgan (JPM) said Strategy's (MSTR) decision to allow selective bitcoin BTC $ 60,449.94 sales to fund preferred stock dividends has introduced avoidable "two-way" risk into crypto
Summary
JPMorgan said Strategy's new bitcoin sales policy introduces "two-way" flow risk, adding uncertainty to crypto markets. The bank argued Strategy should hold cash reserves covering 24–36 months of dividend obligations, above its current 17-month buffer. Crypto sentiment could improve if Strategy expands reserves and Congress passes market structure legislation. Earlier this week, Strategy formalized a policy allowing bitcoin sales to support preferred dividend payments when appropriate, while also authorizing preferred stock repurchases and share buybacks as part of a broader capital structure strategy.