Michael Saylor-led Strategy (Nasdaq: MSTR), formerly MicroStrategy, revealed in its Securities and Exchange Commission (SEC) filing on July 13 that during July 6-12, it sold 4,818,781 company
Michael Saylor-led Strategy (Nasdaq: MSTR), formerly MicroStrategy, revealed in its Securities and Exchange Commission (SEC) filing on July 13 that during July 6-12, it sold 4,818,781 company shares worth $466.7 million and used the proceeds from the sale to boost its U.S. dollar reserve by $450 million to $3 billion.
The Bitcoin (BTC) treasury giant suspended any purchase or sale of the cryptocurrency last week, maintaining its holdings at 843,775 Bitcoin worth $53 billion.
The Bitcoin crash has forced Strategy to sell the cryptocurrency twice this year so far as it sits on an unrealized loss of $10.7 billion on its holdings.
Related: Google searches for XRP sink amid 60% price crash in a year
JPMorgan Chase analysts, led by managing director Nikolaos Panigirtzoglou, said that Strategy's recent cash boost, coupled with positive flows into Bitcoin futures, are "encouraging signs" for the cryptocurrency's outlook, according to a report published by The Block on July 16.
Flows into Strategy-tied leveraged ETFs have been steady and positive over the past seven weeks, in contrast to volatile flows into U.S. spot Bitcoin ETFs, the analysts said in the report.
As per the analysts, it's retail investors who have been buying these Strategy-linked ETFs. This buying trend has supported the MSTR stock, they said.
Meanwhile, the company boosted its cash reserve to $3 billion, equivalent to roughly 20 months of preferred dividend payments.
The JPMorgan analysts remarked, "This is an encouraging sign for the Bitcoin outlook, in our view."
Though the analysts said they found it difficult to assess if the company's cash boost has directly improved sentiment among Bitcoin investors, they found Bitcoin futures recording positive flows this week despite the outflows from spot ETFs "encouraging."
Institutional investors, not retail traders, are driving this momentum in both Bitcoin futures and perpetual futures on the Chicago Mercantile Exchange (CME), the analysts highlighted.
Bitcoin was trading at $64,164 at the time of writing, as per Decibel.
Related: Billionaire with 70% of portfolio in Bitcoin makes bold investment
