JPMorgan warns of $1.25B Bitcoin sales strategy by Bitbo

July 3, 2026

JPMorgan has raised concerns about Strategy’s recent decision to potentially sell up to $1.25 billion in bitcoin, creating a risk for the cryptocurrency market. Strategy, led by Michael Saylor, announced its plan to sell the bitcoin to fund preferred dividends in the near future.

The move has led to a decline in Strategy’s common and preferred stock in the broader financial markets. JPMorgan analysts, led by Nikolaos Panigirtzoglou, believe that Strategy’s new policy introduces a two-way risk for the market. This means that price fluctuations in either direction could result in losses for those exposed to bitcoin.

Strategy’s decision also includes setting a minimum cash reserve target to cover 12 months of preferred dividends and interest expense. However, its current reserve of $2.55 billion only covers 17 months of obligations, leaving little room for flexibility. JPMorgan suggests that Strategy should aim for a higher reserve target of 24 to 36 months and consider issuing common equity instead of selling off bitcoin.

Despite JPMorgan’s warning, Strategy remains the largest global buyer of bitcoin, with significant holdings of 847,363 BTC and over $13.7 billion in purchases in 2026. However, the company recently made its first bitcoin sale since 2022, selling 32 bitcoins for approximately $2.5 million between May 26 and May 31. This marked a shift from Saylor’s previous stance of never selling any of the company’s bitcoin reserves.

JPMorgan observed that Strategy’s sale contributed to the downward pressure on bitcoin prices in late May and early June. The market is closely watching how Strategy’s bitcoin sales plan will impact both the company’s financial position and the broader cryptocurrency market. As Strategy navigates its future financial decisions, many are keeping a close eye on the potential risks and rewards associated with selling a significant amount of bitcoin to fund dividends and buybacks.