JPMorgan has issued a warning to Strategy, a company that holds over 847,000 BTC. The bank criticized Strategy's new policy of using bitcoin sales to fund dividends, saying it introduces avoidable two-way risk and market uncertainty.
JPMorgan recommends that Strategy increase its cash reserves to cover 24-36 months of obligations instead of relying on bitcoin sales. This would help stabilize investor confidence and reduce market volatility.
The bank's warning highlights the significant impact that Strategy's buying or selling actions can have on the bitcoin markets, given its large BTC holdings.