Strategy will need to increase its dollar reserves to restore market confidence in the company’s financial model, reports The Block, citing a JPMorgan report.
The firm established a dollar reserve on December 1, 2025. Initially, it amounted to $1.44 billion. The funds were allocated for dividend payments on preferred shares and interest on debt. The minimum reserve goal is to cover at least 12 months of such payments, with a long-term target of 24 months or more.
As of May 31, 2026, the reserve had decreased to $900 million. Strategy explained that it may adjust the reserve size based on market conditions and liquidity needs.
On June 1, the company disclosed the sale of 32 BTC for approximately $2.5 million at an average price of $77,135. The funds were used for STRC payments. This was the first Bitcoin sale since late 2022. As of May 31, Strategy held 843,706 BTC with an average purchase price of $75,699.
Experts believe the Bitcoin sale alarmed industry participants. The transaction heightened concerns about further liquidations to ensure shareholder payments.
Strategy indicated that it determines the dollar reserve size considering STRC demand, credit risk, and market conditions. The company also considered selling Bitcoin if deemed advantageous.
According to the JPMorgan report, the company’s current fiat reserves are sufficient for only 6.3 months of dividend payments. Experts emphasized that Strategy needs to increase its dollar reserves to alleviate investor concerns.
JPMorgan also noted that positive trends in the crypto market in the second half of the year will depend on the transparency of the company’s financial strategy and the prospects of the CLARITY Act being adopted.
In June, Grayscale analysts described Strategy’s first Bitcoin sale in a long time as a “stress test” of its financial model.