Analysts at JPMorgan have raised concerns about the financial health of Michael Saylor’s Strategy, warning that the company may need to strengthen its dollar reserves to cover annual dividend payments of around $1.7 billion. The bank’s caution comes after Strategy sold 32 Bitcoin in late May, a move that, while small, sparked questions about how the firm will meet future obligations without tapping its Bitcoin holdings.
According to the JPMorgan report, Strategy’s current cash reserves would only cover about six months of dividend payments. The bank suggests that rebuilding these reserves could ease fears that Strategy might be forced to liquidate Bitcoin to pay dividends. This scrutiny follows Strategy’s earlier establishment of a $1.44 billion reserve in December to support preferred stock dividends and debt interest.
Despite these concerns, JPMorgan expects Strategy to remain a major Bitcoin buyer, projecting around $32 billion in purchases in 2026, up from previous estimates. The bank also lowered its overall outlook for digital assets, giving less than a 50% chance that the CLARITY Act will pass this year. Bitcoin’s price near $60,000 and Mining costs around $87,000 are also cited as key factors.
Industry figures like BTCTOP CEO Jiang Zhuoer have defended Strategy, arguing that selling Bitcoin would damage its reputation and that the company can manage even if Bitcoin drops to $30,000. However, JPMorgan warns that the current pessimism could turn bullish if conditions improve later in the year.