JPMorgan: Strategy Bitcoin Selling Strategy Could Exacerbate Market Two-Way Volatility Risk

CoinFeed July 2 news, according to CoinDesk report, Wall Street bank JPMorgan (JPM) said in its latest report that MicroStrategy (referred to as Strategy) allows selective selling of BTC for preferred stock dividends, introducing 'two-way' liquidity risk and increasing crypto market uncertainty. The report pointed out that Strategy currently has about $2.55 billion in cash reserves, enough to cover about 17 months of preferred stock dividends and interest, but analysts believe coverage should be increased to 24–36 months through additional common stock issuance to reduce the possibility of forced Bitcoin selling in the future. Strategy currently holds about 847,000 BTC, accounting for about 4% of the total Bitcoin supply, and has accumulated purchases of about $13.7 billion this year, accounting for about 70% of the market's net inflows.