JPMorgan has turned more constructive on Bitcoin after Strategy expanded its U.S. dollar reserve to $3 billion, giving the treasury company enough liquidity to cover roughly 20 months of preferred-stock dividends and interest payments.
The larger reserve is an “encouraging sign” for Bitcoin, analysts led by Nikolaos Panigirtzoglou wrote, because it reduces the likelihood that Strategy will need to sell more of its Bitcoin treasury to meet recurring cash obligations.
Strategy increased its reserve by $450 million during the week ending July 12. Its current dashboard lists $1.763 billion in annual dividend obligations and 20.4 months of coverage.
The company holds 843,775 BTC acquired at an average price of $75,476, leaving its Bitcoin position unchanged during the latest reporting period.
Larger Buffer Reduces Sale Pressure
Strategy’s cash position became a central Bitcoin-market issue after the company authorized a broader BTC monetization program covering reserve funding, preferred dividends, debt interest and securities repurchases.
JPMorgan initially warned that the Bitcoin sales policy introduced two-way market risk. Strategy had shifted from a near-exclusive accumulation model toward a structure that could release Bitcoin when cash obligations or capital-management decisions required it.
The bank previously argued that Strategy should maintain 24 to 36 months of cash coverage. The earlier $2.55 billion reserve provided about 17.4 months, leaving the company below JPMorgan’s preferred range. The increase to $3 billion closes part of that gap without requiring another disposal from the Bitcoin treasury.
Strategy sold 3,588 BTC for about $216 million between June 29 and July 5. The proceeds funded quarterly dividends on STRF, STRE, STRK and STRD, alongside the June distribution on STRC.
Futures Demand Adds Market Support
JPMorgan also identified sustained inflows into Bitcoin futures as a positive market signal despite volatile demand across U.S. spot Bitcoin exchange-traded funds.
The bank attributed much of the futures activity to retail investors and said the flows had supported Strategy’s common stock, helping prevent MSTR from falling below the net asset value of its Bitcoin holdings. Strategy shares recently traded around $97.58 after gaining nearly 6% during the latest session.
Strategy neither bought nor sold Bitcoin between July 6 and July 12, directing capital toward the reserve while keeping its 843,775 BTC position intact.
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