Strategy may be forced to sell bitcoin, breaking ‘hodl’ pledge

Strategy revealed in a recent 8-K filing with the SEC that it may be forced to sell its Bitcoin to meet debt obligations if BTC prices continue to drop. The move could potentially break Micheal Saylor’s long-standing “never sell Bitcoin” stance.

The company stated that it could be required to liquidate its digital assets at a loss or under unfavorable terms if it lacks access to favorable equity or debt financing. Strategy currently holds 528,185 Bitcoins at an average cost of $67,458 per BTC, valued at $40.119 billion.

Strategy warns to liquidate its BTC amid escalated U.S.-China trade war

$MSTR: FFS add @Forbes to the list as well. This language is in every 8-K people, every one of them. This isn't new | shocking:https://t.co/ukhDxjyKuk

— Adrian Morris (@Adrian_R_Morris) April 8, 2025

Bitcoin has been wildly volatile over the last week as traders and digital asset investors scrambled to get ahead of a “crisis scenario” for BTC. Micheal Saylor’s software company-turned-bitcoin buyer Strategy has warned it could be forced to sell some of its Bitcoin to meet its financial obligations. The firm noted in a recent 8-K filing with the SEC that without access to favorable equity or debt financing, it could be required to liquidate BTC at a loss or under unfavorable terms.

The company has acquired 275,965 BTC at an average price of $93,228 since Trump’s November 2024 election win. The firm also currently holds nearly 530,000 BTC at an average cost of $67,000 per Bitcoin, valued at roughly $42 billion. Strategy has fueled its digital asset purchases by selling convertible bonds and issuing stock.

“As Bitcoin constitutes the vast bulk of assets on our balance sheet, if we are unable to secure equity or debt financing in a timely manner … we may be required to sell Bitcoin to satisfy our financial obligations, and we may be required to make such sales at prices below our cost basis or that are otherwise unfavorable.”

~ Strategy.

The software company acknowledged that it’s expecting to record a near -$6 billion unrealized loss for the first quarter, despite a related $1.69 billion income tax benefit. Strategy also warned it might not be able to regain profitability in future quarters, especially if the value of its BTC continues to drop. 

The largest BTC Treasury company held around $8 billion worth of debt at the end of March. It also owes about $35 million per year in interest in addition to around $150 million it must pay every year in dividends on its stock.

The filing highlighted that “a significant decrease in the market value of our Bitcoin holdings could adversely affect our ability to satisfy our financial obligations.” The firm’s share price has almost halved since soaring to its November peak that saw it inducted into the Nasdaq 100 index.

Bloomberg Intelligence senior commodity strategist Mike McGlone argued that “Everyone’s in for the long-term, as long as it’s going up.” He also mentioned that he didn’t know how BTC was going to get to $100,000 from $10,000 in 2020, but the trends showed up. Now, he sees the reversion path “back towards $10,000.”

Trump’s trade war causes Bitcoin to fall

Bitcoin plummeted sharply in the wake of Donald Trump’s sweeping reciprocal tariffs, which were announced on Wednesday and branded as “Liberation Day.” He imposed a 10% baseline tariff on all imports to the U.S. but added higher rates on other nations based on how they tax U.S. goods.

The U.S. President argued that the move was a way to erase America’s trade deficit and protect U.S. manufacturers. Moody’s Analytics chief economist Mark Zandi has warned that extended tariffs could push both the U.S. and its trading partners into recessions.

The crypto market breathed a sigh of relief after Trump announced the 10% across-the-board tariff since many expected harsher measures. The initial reaction caused BTC to drop to around $88,000. After he announced additional tariffs and higher rates on major trade partners, concerns over inflation and economic uncertainty sent Bitcoin tumbling down to $81,000. The virtual currency has also plummeted to lows not seen since early November and is currently exchanging hands at $76,908 at the time of publication, a 3.55% drop in the last 24 hours.

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