JPMorgan Warns Strategy's 32 BTC Sale Spooked Markets, Urges Cash Reserve Rebuild

According to JPMorgan analysts led by managing director Nikolaos Panigirtzoglou, Strategy's sale of 32 bitcoin last week unsettled crypto markets and raised investor concerns about the company's ability to meet dividend obligations. The analysts warned that Strategy's current dollar reserves cover only around 6.3 months of dividend payments, creating a risk that the company may need to sell more bitcoin to cover the roughly $1.7 billion in annual dividend payments.

JPMorgan recommended that Strategy rebuild its cash reserves to restore investor confidence. The company currently holds 843,706 bitcoin at an average cost of $75,699. Despite the cautious outlook citing weaker capital flows and lower probability of US crypto legislation passing, JPMorgan still expects Strategy to continue bitcoin acquisitions, potentially buying around $32 billion of BTC in 2026.