JPMorgan Questions Strategy’s Bitcoin Sales Policy, Urges Cash Buffer
JPMorgan Chase & Co. said Strategy’s Bitcoin sales policy could add “two-way flow risk” to crypto markets. Strategy announced a BTC monetization plan that allows selling part of its 847,363 BTC holdings to fund preferred dividends and buybacks.
JPMorgan analysts, led by Nikolaos Panigirtzoglou, warned that Strategy has been a major buyer, roughly accounting for 70% of total net digital asset inflows this year. In their view, the new Bitcoin sales policy could enable the largest buyer to sell during market stress.
The bank urged Strategy to hold enough cash to cover 24 to 36 months of preferred dividend and interest obligations. Strategy currently has about $2.55B in cash, covering roughly 17 months—below JPMorgan’s suggested buffer.
Market reaction was mixed. Benchmark reiterated a Buy on MSTR with a $570 target, framing the capital framework as “formal permission” to reverse during stress. After the policy update, MSTR shares rose 12.6% to $92.68 on Monday and later moved above $100, while STRC gained about 10% to around $83.67.
Key figures: Strategy holds 847,363 BTC and had sold 32 BTC for about $2.5M in late May 2026, its first-ever BTC sale, according to the article.
Neutral
JPMorgan’s critique targets the *mechanics* of Strategy’s Bitcoin sales policy: it could change a historically consistent BTC buyer into a more discretionary seller, which may raise perceived sell-pressure risk during downturns. That is a plausible downside-sentiment driver for BTC, especially if traders start modeling “treasury liquidity needs” as a trigger for BTC supply.
However, the immediate tape reaction in proxy equities (MSTR and STRC) leaned bullish, suggesting investors may view the policy as financially manageable rather than forced selling. This mirrors past patterns where large-issuer “monetization” announcements created short-term volatility, but markets often stabilized once investors concluded the firm had sufficient buffers and the sales were scheduled/limited.
Net effect: likely **neutral**. Short term, expect sentiment swings around BTC risk-premium and hedging behavior. Long term, market stability will depend on whether Strategy truly maintains JPMorgan’s 24–36 month cash coverage; failure to do so would turn this into a more bearish BTC liquidity narrative, while compliance would dampen fear.