MicroStrategy Bitcoin Sales Warning Sparks 8.6% Share Rally
MSTR•JPMorgan analysts warn that MicroStrategy’s practice of offloading Bitcoin to support operations and preferred-stock distributions could intensify volatility across digital-asset markets. Shares of MicroStrategy surged as much as 8.6% intraday while Bitcoin climbed roughly 2.7% on the report.
1. Risk Warning from JPMorgan
JPMorgan’s equity research team highlighted that MicroStrategy’s ongoing Bitcoin divestments to fund operations and preferred-stock payouts may exacerbate price swings across cryptocurrency markets, creating systemic risk if large blocks are sold into thin liquidity.
2. Market Price Reaction
Following the warning, shares of MicroStrategy jumped up to 8.6% intraday while Bitcoin rose approximately 2.7%, reflecting investor sensitivity to potential disruptions in supply-demand dynamics driven by the company’s sales strategy.
