A recent report by JPMorgan Chase lists Strategy's funding arrangements as a risk that Bitcoin investors should be aware of. The bank believes that if the company, which continues to accumulate Bitcoin, does not replenish its dollar reserves, market concerns about whether it will need to sell Bitcoin to pay dividends in the future could continue to intensify.
Dollar reserves are only enough for about 6.3 months.
The report noted that Strategy sold 32 bitcoins between May 26 and May 31. JPMorgan Chase stated that this transaction was small in scale and more of a symbolic move intended to demonstrate the company's flexibility to preferred stock investors.
However, this has also prompted outside observers to re-examine how the company plans to pay dividends and debt costs without using its Bitcoin holdings. JPMorgan Chase estimates that Strategy's current remaining dollar reserves are only enough to cover approximately 6.3 months of dividend payments.
The company previously established approximately $1.44 billion in reserves last December to support preferred stock dividends and pay interest on outstanding debt. With annual dividend obligations rising to approximately $1.7 billion, replenishing reserves is seen as a direct way to alleviate market concerns.
JPMorgan Chase remains bullish on cryptocurrencies and will continue to buy them.
Shortly after these concerns arose, Strategy co-founder and executive chairman Michael Saylor posted on the X platform that now is a good time to "add a few more points," hinting that the company may continue to increase its Bitcoin holdings.
Despite a more cautious stance on reserve positions, JPMorgan Chase has not lowered its forecast for Strategy's Bitcoin purchases. The bank expects Strategy's Bitcoin purchases in 2026 to reach approximately $32 billion, based on the pace of acquisitions so far this year, up from approximately $22 billion each in 2024 and 2025.
As of now, Strategy holds 843,706 Bitcoins, with an average purchase cost of approximately $75,699 per coin. JPMorgan Chase estimates that, based on current market prices, this holding represents approximately $11.5 billion in unrealized losses.
Legislative and funding expectations lowered
In addition to company-level concerns, JPMorgan Chase has also downgraded its assessment of the progress of US crypto policy. The bank now believes that the probability of the US crypto market structure bill, the Clarity Act, passing this year is less than 50%.
In terms of funding, JPMorgan Chase estimates that approximately $22 billion has flowed into the digital asset market this year, translating to an annualized rate of about $52 billion, nearly half the level expected in 2025. This statistic covers crypto fund flows, CME futures positions, venture capital fundraising, and corporate treasury purchases of cryptocurrencies.
The bank also noted that Bitcoin production cost remains an important indicator for its price analysis. Its estimated Bitcoin production cost was around $90,000 at the beginning of the year, then dropped to $77,000, and recently rebounded to around $87,000.
