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JPMorgan flags Strategy bitcoin policy risk

JPMorgan flags Strategy bitcoin policy risk. JPMorgan analysts warn Michael Saylor's firm faces two-way risk from its bitcoin sales coverage policy, questioning whether current reserves provide enough buffer against forced liquidations. The banking giant's research team, led by Nikolaos Panigirtzoglou, published a Wednesday report analyzing Strategy's treasury strategy. While the company maintains bitcoin holdings as a primary reserve asset, JPMorgan calculates that 24-36 months of operating coverage would be needed to reassure investors about long-term holding commitments without asthide sales. This analysis touches on a broader tension in corporate bitcoin adoption. Strategy's approach of accumulating bitcoin on balance sheets has inspired copycats, but JPMorgan's coverage ratio framework suggests many firms may lack sufficient liquidity buffers. The bank recommends issuing common equity to boost dollar reserves even if such shares trade at discounts to net asset value—a compromise that could dilute shareholders but reduce liquidation pressure. Could coverage ratios become the new metric for evaluating crypto treasury strategies? Traditional finance increasingly demands downside protection alongside upside exposure. Will other firms follow JPMorgan's framework or double down on pure bitcoin accumulation? Drop your take below. 👇

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