Strategy's "Two-Way Risk" Has JPMorgan Yelling Sell, Sell, Sell — Just Not Bitcoin 🚨

JPMorgan has warned that Strategy's new Bitcoin sales policy introduces what the bank calls "two-way risk" into the crypto market, allowing the Michael Saylor-led firm to offload up to $1.25 billion in BTC to fund preferred dividends in the coming months. The alert, issued by a JPMorgan team led by Nikolaos Panigirtzoglou, comes as Strategy, formerly known as MicroStrategy, faces pressure on both its common shares and preferred series. Strategy introduced the discretionary sale option as part of a broader capital framework that also permits preferred stock repurchases and share buybacks.

The company set a new minimum cash reserve target designed to cover 12 months of preferred dividends and interest expense, but its current $2.55 billion in reserves only covers 17 months of obligations, leaving limited flexibility in upcoming quarters. JPMorgan analysts recommended a higher coverage target of 24–36 months and urged MicroStrategy to issue common equity to expand dollar reserves, which the bank said would reassure investors that the firm will not need to sell Bitcoin. Strategy holds 847,363 BTC and has purchased roughly $13.7 billion of Bitcoin in 2026 alone, making its buy or sell activity a significant flow driver for the broader crypto market.

The framework marks a sharp reversal from Saylor's longstanding public "never sell" stance and follows Strategy's sale of 32 Bitcoin for approximately $2.5 million between May 26 and May 31, its first Bitcoin sale since 2022. JPMorgan flagged that transaction as a contributor to Bitcoin's stress in late May and early June, and noted that greater price volatility could ultimately hurt the company itself by raising the cost of future equity and debt financings.