JPMorgan Warns Strategy's Bitcoin-Selling Pivot Adds 'Two-Way Risk' to Stock
- JPMorgan analysts said Strategy Inc. (formerly MicroStrategy) has introduced 'two-way risk' by initiating a policy of selling Bitcoin to cover obligations like preferred-stock dividends, with the first symbolic sale of 32 BTC setting a precedent.
- The bank urged Strategy to fund dividends through common-equity issuance instead, warning that only ~6.3 months of cash coverage could force additional BTC sales and heighten crypto volatility.
- The note is the most prominent Wall Street pushback yet on Strategy's accumulation thesis as the stock's premium-to-NAV hinges on relentless Bitcoin buying.