Strategy, a software company led by Michael Saylor, may need to sell some of its large Bitcoin Holdings to pay the bill. The company revealed this possibility in a regulatory filing on April 7, saying that without new funds, it could be forced to sell Bitcoin to cover its financial obligations.
The company faces billions of people with potential first quarter losses
According to the submission, the strategy expects to report nearly $6 billion of unrealized losses in the first quarter of 2025. The company currently holds over 528,000 BTC at around $67,450 per coin, as Saylor posted on X on March 31st.
Source: Bitcoin Treasuries
Debt and dividend pressure
The financial pressure for strategy is growing. The company has around $8 billion in debt and has to pay around $35 million in annual payments. In addition, you will need to distribute $150 million in annual dividends.
$MSTR acquired 22,048 BTC at ~$19.2 billion at $86,969 per Bitcoin, achieving BTC yields of YTD 2025 on March 30, 2025. $strk $strf https://t.co/1sfybiglnt
– Michael Saylor (@saylor) March 31, 2025
The report suggests that the company’s software business is not making enough money to cover these costs. If Bitcoin prices drop, the ability of a company to manage its debt can be an issue.
New funding plans have been announced
To fix the cash issue, the strategy announced on March 10 that it plans to raise $2.1 billion by selling permanent preferred stocks with an 8% dividend. This move will help the company earn money without undertaking more traditional debt.
According to the rumours, the strategy filed an 8-K form with the SEC on April 7, saying that if Bitcoin prices continue to fall, the company could be forced to sell Bitcoin Holdings to pay off its debts. This statement proved to be a standard risk disclosure practice.
– WU Blockchain (@wublockchain) April 9, 2025
This funding will support business operations and, surprisingly, even more Bitcoin purchases. Based on reports from the WU blockchain, such warnings have appeared in past filings, suggesting that this could be a standard disclosure language rather than a new emergency.
BTCUSD trading in the $77,000 region on the 24-hour chart: tradingView.com
Bitcoin price trends and expert forecasts
Bitcoin is currently trading at around $76,100, down 8% over the past week. This price still outperforms the average purchase cost of a strategy, but market volatility puts the company in a dangerous position.
But not everyone is looking at fate first. Bitmex co-founder Arthur Hayes said in an interview on April 8 that Bitcoin could reach more than $110,000 in the coming months. He believes that central banks will soon cut interest rates, increase global cash flow and help Bitcoin prices rise as deful assets.
This situation highlights how the fate of strategy is currently linked to BTC’s performance. The company is trying to secure more funds, but its future will depend heavily on whether the cryptocurrency market will rise or fall in the coming months.
Gemini Images, TradingView charts
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