JPMorgan: Strategy Can Avoid Forced Bitcoin Sales by Keeping Enterprise Value-to-Holdings Ratio Above 1.0
Strategy, the largest publicly traded corporate holder of Bitcoin, can avoid forced sales by maintaining its enterprise value-to-Bitcoin holdings ratio above 1.0, currently at 1.13, JPMorgan said on Dec. 4. The firm holds $1.4 billion in dividend and interest reserves, providing a buffer if Bitcoin prices decline further. Strategy's stock has dropped approximately 42% over the past three months amid crypto market downturns, while its Bitcoin acquisition pace slowed to 9,062 BTC last month from 134,480 BTC in the same period a year earlier. A potential removal from the MSCI index could trigger roughly $8.8 billion in outflows.