MicroStrategy Boosts Cash Reserves to $3 Billion; JPMorgan Sees 'Encouraging Sign' for Bitcoin

According to JPMorgan analysts, MicroStrategy's boosted cash reserves to $3 billion and positive flows into bitcoin futures are "encouraging signs" for the bitcoin outlook, as detailed in a Wednesday report.

The company increased its U.S. dollar reserves from $2.55 billion, equivalent to about 20 months of preferred dividend payments. While spot bitcoin ETF flows remain volatile with recent inflows followed by outflows, flows into leveraged ETFs tied to MicroStrategy have remained steadier and positive over the past seven weeks. JPMorgan analysts noted that positive momentum in Chicago Mercantile Exchange bitcoin futures and perpetual futures—typically driven by institutional investors—also supports the constructive view. Bitcoin is currently trading at $64,250, down about 1% in 24 hours.