JPMorgan: Strategy can avoid being forced to sell Bitcoin by maintaining the ratio of enterprise value to Bitcoin holdings above 1

Strategy, as the largest publicly held company with Bitcoin, could impact Bitcoin prices if it sells part of its holdings. JPMorgan stated that Strategy can avoid forced selling by maintaining its enterprise value to Bitcoin holdings ratio above 1, which is currently at 1.13. If this ratio stays above that level, the Bitcoin market may stabilize, alleviating recent pressures.

Affected by the downturn in the crypto market, Strategy's stock price has fallen about 42% over the past three months, and the company has also slowed its pace of Bitcoin purchases, adding 9,062 Bitcoins last month compared to 134,480 Bitcoins during the same period a year ago. Additionally, if Strategy is removed from the MSCI index, it could trigger an outflow of about $8.8 billion. However, Strategy has $1.4 billion in dividend and interest reserves, which can help avoid forced selling of Bitcoin even if prices drop further.