BlockBeats News, December 4th. Strategy, as the company holding the most Bitcoin publicly, could impact the Bitcoin price if it sells part of its holdings. JPMorgan Chase has stated that Strategy can avoid forced selling by maintaining a corporate value to Bitcoin holdings ratio above 1.0, which is currently at 1.13.
If this ratio remains above this level, the Bitcoin market may tend to stabilize, thus easing recent pressures. Affected by the downturn in the crypto market, Strategy’s stock price has dropped by about 42% in the past three months. The company has also slowed down its Bitcoin purchasing pace, adding 9,062 Bitcoins last month compared to 134,480 a year ago during the same period.
Furthermore, if Strategy is removed from the MSCI index, it could trigger an outflow of about $8.8 billion. However, Strategy holds $1.4 billion in dividend and interest reserves, which would allow it to avoid selling Bitcoin even if the price drops further.
