JPMorgan: Steady Bitcoin Buys Could Reach $30 Billion

JPMorgan analysts project that if a firm keeps buying bitcoin at its recent monthly pace, total purchases could reach about $30 billion by year-end.

The bank's calculation is a straight-line extrapolation of the company's recent buying rhythm. The estimate is based on the dollar amount of purchases and does not depend on bitcoin's market price.

JPMorgan identified the company as one of the most active corporate buyers of bitcoin and noted past acquisitions were financed with a mix of cash on hand, debt issuance and share offerings. The note did not present alternate scenarios for a slowdown or acceleration in buying.

Analysts highlighted how sustained, large purchases by a single corporate buyer can affect that company's balance-sheet management. The projection covers only purchase activity and does not address the company's motives for holding or selling assets.

“At the current pace, purchases could total roughly $30 billion this year,” the note read.

Company filings show the firm shifted to a bitcoin-focused treasury strategy several years ago and has periodically tapped capital markets to fund additional buys. JPMorgan did not provide a comparison of a $30 billion annualized program with market liquidity measures such as average daily trading volume or new issuance.

The bank's note frames the $30 billion figure as a single-line scenario: sustaining the recent monthly buying rate through the rest of the year would bring cumulative purchases to roughly $30 billion.