JPMorgan Warns Strategy's Bitcoin (BTC) Sales Policy Raises Crypto Market Risk
JPMorgan said the policy could make Strategy both a buyer and seller of bitcoin, while reserves now cover about 17 months of obligations.
7 Articles
7 Articles
J.P. Morgan Chase & Co. warned that the reformulation of Strategy Inc.'s financing strategy, by Michael Saylor, changed the dynamics of the bitcoin market by introducing the risk that one of the biggest buyers of cryptocurrencies could also become a seller, adding a new source of uncertainty for investors. The new strategy's policy of selectively selling bitcoin to finance dividends from preferred shares and manage its balance sheet created a pr…
Strategy Is Allowing Selective Bitcoin Sales To Fund Dividends. JPMorgan Says It Could Add Two-Way Market Pressure.
Strategy has updated its capital structure to include controlled bitcoin sales for dividend support, a shift that JPMorgan says introduces opposing supply-demand pressures across crypto markets.
JP Morgan warned that Michael Saylor's revamped funding strategy at Strategy has upended the bitcoin market, as one of the cryptocurrency's biggest buyers could now act as a seller, creating further uncertainty for investors, Bloomberg reported.
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