Michael Saylor’s software company, Strategy, is making headlines as it warns about potential Bitcoin sales to manage its escalating debt crisis. According to a recent regulatory filing on April 7, 2025, the company, which has heavily invested in Bitcoin, may have no choice but to liquidate part of its holdings if timely financing is not secured.
This troubling news comes amidst a challenging financial landscape for Strategy, which is anticipating an unrealized loss of nearly $6 billion for the first quarter of 2025. Despite a tax benefit of $1.69 billion, the company is still grappling with approximately $8 billion in debt and various financial obligations, including annual interest payments of $35 million and dividends of $150 million. The current performance of its software business has not generated sufficient revenue to alleviate these financial burdens.
Michael Saylor, in a post made on March 31 on X, revealed that Strategy holds a substantial amount of 528,185 BTC, acquired at an average price of $67,458 per coin, totaling over $35 billion. If the company fails to secure additional funding, it risks having to sell its Bitcoin holdings at a loss, which could compound its financial woes.
As of now, Bitcoin is trading at roughly $76,000, reflective of a decline of 10% over the previous week. While some analysts express concern regarding Bitcoin’s future, others, like BitMEX co-founder Arthur Hayes, remain optimistic, predicting the price could soar to $110,000 or even higher in the coming months. Hayes suggests that central banks worldwide might need to lower interest rates, potentially increasing global liquidity and positively affecting Bitcoin’s value.
To tackle its liquidity issues, Strategy announced on March 10 a plan to raise $2.1 billion through the sale of perpetual preferred stock. This **preferred stock** offers an 8% dividend, allowing the company to generate capital without relying solely on traditional debt structures. However, the success of this plan remains fundamentally tied to the performance of Bitcoin in the market.
