JPMorgan warns Strategy's Bitcoin sales could add market risk

A major shift in corporate Bitcoin strategy is raising concerns on Wall Street about increased market volatility. JPMorgan analysts warned this week that Strategy Inc., the world's largest corporate holder of Bitcoin, has introduced "avoidable two-way risk" into cryptocurrency markets by formalizing a policy that allows it to sell portions of its vast holdings.

The company, led by Michael Saylor, announced what it calls the "BTC Monetization Program" earlier this week. The new framework authorizes Strategy to liquidate up to $1.25 billion worth of Bitcoin to strengthen its cash reserves, fund preferred shareholder dividends, service debt, and execute share buybacks. This marks a significant departure from the firm's longstanding identity as a relentless accumulator of the digital asset.

According to JPMorgan's analysis, led by managing director Nikolaos Panigirtzoglou, this transformation turns one of Bitcoin's most consistent buyers into a potential seller, creating uncertainty for investors. The bank's report, issued Wednesday, stated that the possibility of Strategy selling Bitcoin introduces two-way risk, inducing more uncertainty and volatility for prices that could have...