JPMorgan: Strategy’s Bitcoin Sale Policy Introduces 'Avoidable Two-Way Risk' to Crypto Market

CoinFeed July 3 news, according to The Block, JPMorgan analysts said that Strategy recently finalized its Bitcoin sale policy, introducing 'avoidable two-way risk' to the crypto market, and the company may become both a buyer and seller of Bitcoin in the future. Strategy's BTC Monetization Program allows the sale of up to $1.25 billion in Bitcoin to supplement cash reserves, pay preferred stock dividends and interest, or conduct buybacks. The current cash reserve is approximately $2.55 billion, covering about 17 months of dividends. JPMorgan suggests that Strategy increase its cash reserves to a coverage level of 24 to 36 months by issuing common stock to increase dollar reserves, even if this causes the stock price to fall below net asset value.