Strategy, the software company led by Michael Sirer, may require to sell some of your big bitcoin holdings to pay its bills. The company revealed the possibility in a regulatory filing on 7 April, saying that without new financing, bitcoin could be forced to sell to cover financial obligations.
The company faces billions in potential Q1 losses
According to the filing, the strategy hopes to report an unrealistic loss of approximately $ 6 billion for the first quarter of 2025. It comes despite a tax profit of $ 1.7 billion. The company is currently purchased at $ 67,450 per coin over 528,000 BTC, as Saylor posted on X 31 March. Their total investment is more than $ 35 billion.
Source: Bitcoin Treasuries
Loan and dividend pressure mountain
The pressure on finance of strategy is increasing. The company has a loan of about 8 billion dollars and will have to pay around $ 35 million in annual interest payment. At its top, it is required to distribute $ 150 million into the annual dividend.
$ Mstr ~ $ 1.92 billion is acquired 22,048 BTC ~ $ 86,969 per bitcoin and 11.0% ytd 2025 BTC yield. As as 3/30/2025, @strategy 528,185 holds $ BTC ~ $ 67,458 per bitcoin for ~ $ 35.63 billion. $ Strk $ Strf https://t.co/1sfybiglnt
– Michael Sayler (@Saylor) 31 March, 2025
Reports show that the company’s software business does not make enough money to cover these costs. If bitcoin prices fall, the company’s ability to manage its debt may be in trouble.
New funding plan announced
To fix its cash problems, the strategy declared on March 10 planned to raise $ 2.1 billion by selling a favorite stock with 8% dividend. This step will help the company get money without taking more traditional loans.
The rumor is that the strategy filed an 8-form form with SEC on 7 April, stating that if the price of bitcoin continues to fall, the company could be forced to sell its bitcoin holdings to repay the loan. It was found that this statement is a standard risk disclosure practice, and it …
– Wu blockchain (@Wublockchain) 9 April, 2025
Fund will support both the operations of the company and the purchase of even more bitcoins, surprisingly,. Based on the reports of Wu Blockchain, the warnings such as these have appeared in the previous filing, suggesting that it can be the 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 predictions
Bitcoin currently trades around $ 76,100, which is 8% below the previous week. While this price is still above the average purchase cost of the strategy, the market volatility keeps the company at a risk filled.
Not everyone sees the doom further, though. Bitmex co-founder Arthur Hayes said in an interview in April 8 that Bitcoin could reach $ 110,000 or more in the coming months. They believe that the central banks will soon cut interest rates, increase global cash flow and increase the price of bitcoin as a property of deflation.
The situation highlights how close the strategy is now by the performance of BTC. While the company tries to secure more money, its future depends to a large extent whether the cryptocurrency market goes up or down in the front months.
Specially displayed image from Gemini imagene, chart from tradingview
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