JPMorgan Chase: Strategy Financing Adjustment Introduces New Risks to the Bitcoin Market

BlockBeats News, July 3rd, JPMorgan Chase warned that its Strategy adjustment has brought new risks to the Bitcoin market. Formerly one of the largest buyers of cryptocurrency, Strategy may now also act as a seller, increasing market uncertainty and shaking investor confidence.

JPMorgan Chase believes that Strategy's new policy allows selective selling of Bitcoin to fund preferred stock dividends and manage the balance sheet, creating an "avoidable" two-way flow risk. Only if Strategy maintains a larger cash reserve to cover two to three years of dividend payments will investors have more confidence that it will not be forced to liquidate its Bitcoin holdings.