Strategy has introduced a framework that would allow it to sell part of its Bitcoin holdings if needed. The company currently holds 847,363 BTC, and said the structure is intended to support preferred dividend payments and share buybacks. Formerly known as MicroStrategy, the US-listed firm has been one of the most visible corporate Bitcoin holders in the market.
JPMorgan flags a shift in how the market may view Strategy
In a note published Wednesday, JPMorgan analysts led by Nikolaos Panigirtzoglou said the policy adds an avoidable two-way risk to the crypto market. Their point was simple: Strategy represented about 70% of net digital asset inflows this year, so its buying activity has carried unusual weight in supporting market stability. A company once seen as one of Bitcoin’s most dependable buyers is now also preparing for the possibility of selling.
That changes the lens through which traders and investors may assess the stock and the broader market. It is no longer only about continued accumulation. The possibility of distribution now has to be priced in as well.
Cash reserves become the center of the debate
JPMorgan argued that issuing common stock to expand cash reserves would be a better way to reassure investors. The bank’s concern is tied to liquidity: a bigger cash buffer could reduce fears that Strategy may need to sell Bitcoin in the near term.
At present, Strategy holds $2.55 billion in cash, which JPMorgan said is enough to cover preferred dividend and interest obligations for roughly 17 months. The bank does not view that as sufficient protection against uncertainty. In its view, a cash coverage window of 24 to 36 months would offer a stronger margin of safety and make investors more comfortable that Bitcoin sales would not be required in the foreseeable future.
Analysts split as Benchmark keeps bullish view
Not every research firm shares JPMorgan’s stance. After the selective sale policy was announced, Benchmark Equity Research maintained its “buy” rating on MSTR and reiterated a $570 price target. Based on the report, that target implies more than 500% upside from recent trading levels.
Benchmark analyst Mark Palmer described the new capital framework as a formal layer of flexibility that could let Strategy adjust its capital structure under market pressure. He said that could be a clear positive for shareholders.
Shares rally after the announcement
Equity investors reacted positively in the short term. On Monday, MSTR rose 12.6% to about $92.68. STRC, which had traded below $75 the previous week, gained nearly 10% to around $83.67.
By Wednesday, MSTR had moved above $100, up 27% from its Friday low, adding about $5 billion in market capitalization. The latest trading data cited in the report showed the stock at $100.83, a daily increase of 7.93%. The rally suggests the market welcomed the added flexibility, even as debate over Strategy’s cash cushion and Bitcoin sale option intensified.