JPMorgan "Strategy's financial resilience, an important variable for short-term Bitcoin flows"

An analysis suggested that the future flow of Bitcoin (BTC) depends more on Strategy (formerly MicroStrategy)'s ability to maintain its balance sheet than on miners selling.

On the 8th, according to crypto-focused media Catena, JPMorgan stated in a report that "the recent selling pressure is the result of a combination of a decline in network hashrate, rising operating costs, and market concerns about Strategy's ownership structure."

JPMorgan explained that China recently tightened its ban on private mining activities and, with electricity costs rising, global mining profitability has fallen. This has led to observations that some miners sold Bitcoin to secure operating costs.

Strategy holds more than 650,000 bitcoins. The ratio of the value of its bitcoin holdings to enterprise value remains above 1, indicating the company can meet debt and dividend obligations without selling Bitcoin. The report analyzed that "Strategy's cash holdings amount to about $1.4 billion (about KRW 2.05 trillion), which is enough to cover related expenditures for about two years."

Meanwhile, attention is focused on the decision on whether it will remain in the MSCI index, scheduled for the 15th of next month. JPMorgan assessed that, since Strategy's stock has plunged since last October, the market has already priced in much of the possibility of index exclusion.

JPMorgan added, "If trading conditions stabilize, the long-term model still points to an upward path for Bitcoin's price."