Strategy May Be Forced to Sell Bitcoin as Financial Pressures Mount Amid Market Turmoil

Bitcoin may be on the chopping block for Strategy, the software company turned major digital asset holder.

In a recent SEC filing, Strategy signaled that it could be forced to liquidate its Bitcoin holdings to meet financial obligations. The warning comes as the company battles falling BTC prices and mounting debt, potentially ending Michael Saylor’s long-standing commitment to never sell Bitcoin.

The firm currently holds approximately 528,185 Bitcoins, with an average purchase cost of $67,458 per coin. As of the latest valuation, this amounts to roughly $40.1 billion in digital assets. However, ongoing volatility in the crypto market and rising financial liabilities have placed Strategy in a vulnerable position.

Debt obligations may force BTC sales

Strategy disclosed in its 8-K filing that if it fails to secure favorable financing through equity or debt, it may have to sell its Bitcoin under unfavorable market conditions. The company has been aggressively accumulating BTC since November 2024, adding 275,965 Bitcoins at an average price of $93,228. Strategy has funded these acquisitions by issuing stock and selling convertible bonds.

The company noted that if access to capital markets becomes limited, it may be required to sell Bitcoin at a loss to cover financial obligations. It acknowledged that a significant drop in the market value of its Bitcoin could directly impact its ability to service debt.

Unrealized losses and profitability concerns

Despite a $1.69 billion tax benefit, Strategy is bracing for an unrealized loss of nearly $6 billion for the first quarter. The firm has also warned that it may not return to profitability if the price of Bitcoin continues to decline. At the end of March, Strategy held approximately $8 billion in debt. It also faces $35 million in annual interest payments and $150 million in yearly dividend obligations.

The pressure on the company has grown as its share price has nearly halved from its November peak, following its entry into the Nasdaq 100 index.

Trade war escalation triggers market drop

The rising trade disputes between America and China has destabilized the entire crypto market ecosystem. The Bitcoin market fell abruptly after President Trump began the tariff process by imposing a 10 percent levied on imported goods which he later expanded to target pivotal trading regions. The price of Bitcoin dropped to $76,908 to establish its most reduced point since November alongside its most significant drop from current peaks. The severe price decline has increased significant financial dangers for Strategy which has businesses worried about selling off its investments.

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