JPMorgan stated that Strategy’s strong balance sheet outweighs miner selling pressure and supports Bitcoin’s stability. The firm noted that high-cost miners have sold BTC following rising energy prices and declining profitability, but the primary influence comes from the company’s balance sheet.
The report highlights that Strategy’s enterprise value-to-bitcoin holdings ratio stands at 1.13; as long as it remains above 1.0, the company is expected to avoid BTC sales and reinforce investor confidence. Bitcoin’s production cost is estimated at $90,000 per unit, down from $94,000 the previous month.
On December 3, Strategy announced a $1.44 billion USD reserve to cover debt interest and preferred dividends for a full year, with plans to expand it to cover 24 months. The company currently holds 650,000 BTC, purchased at an average price of $87,000 each, for a total cost of $56.4 billion. The dual-reserve strategy aims to reduce the need for forced sales during market downturns and maintain confidence in the ecosystem.
Source: https://x.com/USFunds/status/1996647498304385055
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