The JPMorgan identified factors it considers positive for Bitcoin, even with the recent volatility in the flows of the cryptocurrency's spot ETFs. In a report signed by the team led by Nikolaos Panigirtzoglou, the bank points out that the increase in Strategy's cash reserves and the consistent demand for futures contracts reinforce a more favorable view for the market.
In recent weeks, spot Bitcoin ETFs alternated between periods of inflows and outflows, demonstrating irregular investor behavior. In contrast, leveraged ETFs linked to Strategy recorded positive flows for seven consecutive weeks.
According to JPMorgan, these purchases, driven mainly by retail investors, helped support the price of Strategy's shares and prevented them from being traded below the net asset value of its Bitcoin reserves.
Another point highlighted by the analysts was the increase in the company's dollar reserves, which rose from US$ 2,55 bilhões para US$ 3 bilhões. The amount corresponds to approximately 20 months of dividend payments on the preferred shares issued by the company.
"In our opinion, this is an encouraging sign for bitcoin's outlook", the analysts said.
The bank assesses that this cash position reduces concerns that Strategy may need to sell part of its Bitcoins in the future to meet financial commitments. In previous analyses, JPMorgan had already argued that reserves sufficient to cover between two and three years of dividends would significantly reduce this risk.
In addition, the report notes that Bitcoin futures contracts continued receiving new inflows this week, despite the outflows recorded by spot ETFs. The move was identified both in contracts on the Chicago Mercantile Exchange (CME) and in perpetual futures, normally used by institutional investors.
At the beginning of the week, Strategy's president and CEO, Phong Le, reaffirmed the company's commitment to the largest cryptocurrency on the market by declaring: "We’re not going anywhere".
Le also stated that the company feels "very safe" in relation to its balance sheet. According to him, Strategy would only begin to assess risks related to indebtedness if Bitcoin fell to a range between US$ 8.000 and US$ 10.000. The executive added that the company intends to issue new preferred shares of STRC when they return to the par value of US$ 100, using the proceeds to acquire more Bitcoin and expand its dollar reserves.