Michael Saylor’s Strategy Warns of Potential Bitcoin Sales if Funding Dries Up
With Bitcoin slipping in price, the spotlight has once again landed on MicroStrategy—now rebranded as “Strategy”—and its bold bet on the world’s largest cryptocurrency.
Under the direction of Chairman Michael Saylor, the firm has accumulated a staggering 528,185 BTC, acquired at a total cost of roughly $35.63 billion. That puts the average purchase price at $67,458 per coin.
Although the company’s Bitcoin stash is still worth more than it paid—currently estimated at around $40.61 billion—the recent dip in market prices has raised questions about the firm’s financial flexibility. Bitcoin’s current value remains around 12% below the average cost at which Strategy acquired its holdings.
A recent regulatory filing dated April 7 revealed that if the company cannot raise capital—either through equity or debt—on favorable terms, it may have to offload some of its Bitcoin. The filing warned that such sales might need to happen at a loss or under market conditions that aren’t ideal, posing a real risk to Strategy’s long-term balance sheet.
The firm anticipates booking an unrealized loss of nearly $6 billion for the first quarter. However, this will be partially offset by a $1.69 billion tax benefit. Still, the company made it clear that if Bitcoin’s price continues to trend downward, it could jeopardize Strategy’s ability to meet its financial commitments.
At the close of Q1, Strategy was carrying around $8 billion in debt, with $35 million in annual interest obligations and another $150 million owed each year in stock-related dividends. While the company remains one of Bitcoin’s largest corporate holders, the road ahead may be more complicated if bearish conditions persist.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a "detective-like" mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
