Strategy has become one of the largest business owners and buyers of bitcoin with 847,363 BTC on the balance sheet. Its aggressive accumulation strategy has made the company a major source of demand for the cryptocurrency, meaning any shift toward selling the digital asset, even occasionally, can affect market liquidity, price dynamics, and investor sentiment by introducing a new source of supply.
Demand for US spot bitcoin exchange-traded funds (ETFs), the biggest source of institutional crypto purchases since their debut in 2024, has weakened sharply in recent months. The funds saw a record $4 billion in net outflows in June after a 13-day redemption streak pushed year-to-date flows into negative territory for the first time.
The bank said bitcoin came under pressure in late May and early June after Strategi disclosed in a June 1 regulatory filing that it sold 32 BTC between May 26 and May 31 to fund dividend payments. The selloff added to pressure from a broader repricing of Federal Reserve interest rate expectations that had already weighed on bitcoin and gold.
JPMorgan noted that Michael Saylor’s strategy has become one of bitcoin’s biggest buyers, buying about $13.7 billion worth of the cryptocurrency year to date, about 70% of the bank’s estimate of total net inflows of digital assets. The company has about 4% of bitcoin’s total supply.
