According to The Block, JPMorgan analysts stated that Strategy may need to rebuild its U.S. dollar reserves to alleviate market concerns over future Bitcoin sales. Strategy’s recent sale of 32 Bitcoin caused market unease, with current U.S. dollar reserves sufficient to cover only about 6.3 months of dividend payments. The company holds 843,706 Bitcoin at an average cost of $75,699, resulting in a paper loss of approximately $11.5 billion at current prices. If the company maintains its year-to-date purchasing pace, Bitcoin acquisitions could reach around $32 billion by 2026. Analysts expect the probability of passing crypto legislation this year to be below 50%.
JPMorgan analysts suggest the strategy needs to rebuild USD reserves to restore confidence.
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Summary
JPMorgan analysts say the strategy must rebuild USD reserves to restore market confidence after selling 32 Bitcoin, sparking fears of further sales. The firm holds sufficient USD to cover 6.3 months of dividends and faces an $11.5 billion loss on its 843,706 Bitcoin holdings. As altcoins to watch gain momentum, the company’s Bitcoin spending could reach $32 billion by 2026. The likelihood of an encryption bill passing this year remains below 50%.
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