PANews, July 17 – According to The Block, J.P. Morgan analysts said that Strategy's recent boost in cash reserves and positive inflows in Bitcoin futures are an "encouraging signal" for Bitcoin's outlook, even though spot Bitcoin ETF flows remain unstable. Strategy's USD reserves increased from $2.55 billion to $3 billion, enough to cover about 20 months of preferred stock dividends. J.P. Morgan had previously noted that if Strategy can rebuild enough USD reserves to cover two to three years of dividends, it could ease market concerns about potentially being forced to sell Bitcoin in the future.
Regarding ETFs, spot Bitcoin ETF flows have been highly volatile in recent weeks, turning from inflows last week to outflows this week. In contrast, leverage ETF flows related to Strategy have remained steady and continuously positive for the past seven weeks. Analysts believe this buying mainly comes from retail investors, which could support Strategy's stock price and prevent its common shares from falling below the net asset value of its Bitcoin holdings. Analysts pointed out that although spot ETF outflows occurred this week, Bitcoin futures still saw positive inflows, which is an encouraging sign.