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Strategy Raises Cash Buffer, Signals Flexibility as CEO Rejects Forced Bitcoin Sales

JPMorgan says the $1.44 billion reserve reduces the chance of forced Bitcoin sales ahead of an MSCI decision.

Overview

  • The company created a $1.44 billion U.S. dollar reserve via at-the-market equity sales to cover dividends and interest for roughly 12–21 months and disclosed it may use Bitcoin sales or derivatives as contingency tools.
  • CEO Phong Le told CNBC the company would only consider selling Bitcoin in a severe liquidity crisis, describing such a scenario as decades away.
  • JPMorgan and Bitwise say an mNAV above 1 and the new reserve make forced liquidation unlikely, and they view potential MSCI index removal as largely priced in ahead of a Jan. 15 decision.
  • Cantor Fitzgerald and TD Cowen cut price targets and warned that mNAV compression limits accretive equity issuance, increasing dilution risk even as analysts maintain that forced sales are improbable.
  • CryptoQuant reports buying has slowed sharply to about 9,100 BTC in November and roughly 135 BTC early December, with holdings near 650,000 BTC after a single 8,178 BTC purchase on Nov. 17.