JPMorgan: The Strategy can be maintained by keeping the corporate value ratio of Bitcoin holdings above 1 to avoid forced selling of Bitcoin

BlockBeats News, December 4th. As the company holding the most Bitcoin publicly, Strategy may impact the price of Bitcoin if it sells part of its holdings. JPMorgan Chase stated that Strategy can avoid forced selling by maintaining a ratio of corporate value to Bitcoin holdings above 1.0, with the current ratio at 1.13.

If this ratio stays above that level, the Bitcoin market may tend to stabilize, helping to alleviate recent pressure. Due to the downturn in the crypto market, Strategy's stock price has fallen by about 42% in the past three months. The company has also slowed down its Bitcoin purchases, acquiring 9,062 Bitcoins last month compared to 134,480 Bitcoins in the same period a year ago.

Furthermore, if Strategy is removed from the MSCI index, it could trigger an outflow of approximately $8.8 billion. However, Strategy has a reserve of $1.4 billion in dividends and interest, which would allow it to avoid selling Bitcoin even if the price further declines.