Selling Bitcoin To Cover Debt? Michael Saylor’s Strategy Flashes Warning

Strategy, the software company led by Michael Saylor, might need to sell some of its massive Bitcoin holdings to pay its bills. The company revealed this possibility in a regulatory filing on April 7, saying that without new financing, it could be forced to sell Bitcoin to cover financial obligations.

Company Faces Billions In Potential Q1 Losses

According to the filing, Strategy expects to report an unrealized loss of nearly $6 billion for the first quarter of 2025. This comes despite having a $1.7 billion tax benefit. The company currently holds over 528,000 BTC purchased at about $67,450 per coin, as Saylor posted on X on March 31. Their total investment amounts to more than $35 billion.

Debt And Dividend Pressure Mounts

The pressure on Strategy’s finances is growing. The company has roughly $8 billion in debt and must pay about $35 million in yearly interest payments. On top of that, it needs to distribute $150 million in annual dividends.

$MSTR has acquired 22,048 BTC for ~$1.92 billion at ~$86,969 per bitcoin and has achieved BTC Yield of 11.0% YTD 2025. As of 3/30/2025, @Strategy holds 528,185 $BTC acquired for ~$35.63 billion at ~$67,458 per bitcoin. $STRK $STRF https://t.co/1sfyBIglnt

— Michael Saylor (@saylor) March 31, 2025

Reports suggest the company’s software business doesn’t make enough money to cover these costs. If Bitcoin prices drop, the company’s ability to manage its debt could be in trouble.

To fix its cash problems, Strategy announced on March 10 plans to raise $2.1 billion by selling perpetual preferred stock with an 8% dividend. This move would help the company get money without taking on more traditional debt.

The rumor has it that Strategy filed an 8-K form with the SEC on April 7, stating that if the price of Bitcoin continues to fall, the company may be forced to sell its Bitcoin holdings to repay debts. It was found that this statement is a standard risk disclosure practice, and it…

— Wu Blockchain (@WuBlockchain) April 9, 2025

The funds would support both company operations and, surprisingly, the purchase of even more Bitcoin. Based on reports from Wu Blockchain, warnings like these have appeared in past filings, suggesting this might be standard disclosure language rather than a new emergency.

Bitcoin trades at about $76,100 right now, which is down 8% over the past week. While this price is still above Strategy’s average purchase cost, market volatility puts the company in a risky position.

Not everyone sees doom ahead, though. BitMEX co-founder Arthur Hayes said in an April 8 interview that Bitcoin could reach $110,000 or higher in the coming months. He believes central banks will soon cut interest rates, increasing global cash flow and helping Bitcoin’s price rise as a deflationary asset.

The situation highlights how closely Strategy’s fate is now tied to BTC’s performance. While the company tries to secure more funding, its future depends largely on whether the cryptocurrency market moves up or down in the months ahead.

Featured image from Gemini Imagen, chart from TradingView