Top 3 Highlights:
✅ Strategy faces potential $6 billion Q1 loss despite $1.7B tax benefit
✅ Company might sell Bitcoin holdings if funding plans fall short
✅ BTC still trades above Strategy’s average buy price, but risks are rising
Selling Bitcoin To Cover Debt? Michael Saylor’s Strategy Flashes Warning
Michael Saylor’s Strategy Inc. – the software company turned Bitcoin whale – may soon be forced to sell part of its 528,000+ BTC treasury if funding efforts fall short. A recent regulatory filing on April 7 revealed that without new financing, the company could resort to liquidating Bitcoin to cover its growing financial obligations.
Q1 Losses: $6 Billion and Counting
According to the filing, Strategy is bracing for an unrealized Q1 loss of nearly $6 billion, even after factoring in a $1.7 billion tax benefit. With over 528,185 BTC purchased at an average of ~$67,450 per coin, the company’s crypto portfolio is massive—worth around $35 billion at the time of reporting.
But that’s not the whole story.
Ballooning Debt and Payout Pressure
Strategy has accumulated $8 billion in debt and owes $35 million in yearly interest, alongside an annual dividend obligation of $150 million. Reports suggest that the company’s core software business doesn’t generate enough revenue to sustain these financial burdens.
Even more concerning: if Bitcoin’s price takes a major hit, the firm’s debt coverage ability could crumble. That’s a serious risk for a company whose financial health is now deeply tied to BTC’s performance.
Saylor's Latest Purchase and BTC Yield
On March 31, Michael Saylor confirmed on X (formerly Twitter) that Strategy bought 22,048 BTC for ~$1.92 billion, with an average price of $86,969 per coin—significantly higher than the current BTC price.
"$MSTR has achieved BTC Yield of 11.0% YTD 2025," Saylor posted, reinforcing the company’s long-term conviction in Bitcoin.
However, the timing of these purchases—close to BTC’s local top—adds pressure if prices continue to decline.
SEC Filing and the $2.1B Lifeline
To counter the looming liquidity crunch, Strategy filed an 8-K form with the U.S. SEC on April 7, outlining plans to raise $2.1 billion via the sale of perpetual preferred stock offering an 8% dividend.
This move is intended to avoid taking on more debt and would provide funds for:
Operational costs
Interest and dividend obligations
Potentially... more Bitcoin purchases
Blockchain researcher Wu Blockchain pointed out that similar language about selling $BTC has appeared in past filings and might be standard risk disclosure, not a sign of immediate liquidation.
“Don’t panic,” some say—but in crypto, even a routine disclosure can shake the market.
BTC Price Outlook: $110K Still In Sight?
As of now, #Bitcoin trades around $76,100, down 8% in the past week. Still, it’s above Strategy’s average purchase cost, keeping the company in a profitable position—for now.
Not all analysts are bearish. Arthur Hayes, co-founder of BitMEX, predicted on April 8 that Bitcoin could soar to $110,000+ in the coming months. His reasoning? Global central banks are likely to cut interest rates, increasing liquidity and supporting Bitcoin’s rise as a deflationary asset.
Final Thoughts
Strategy’s Q1 challenges are a sharp reminder of how deeply entwined the company’s fate is with Bitcoin. While raising funds through preferred shares could buy time, the risk remains: if BTC stumbles, so might Strategy.
Whether this is just smart financial disclosure or a flashing red flag, one thing is clear: Michael Saylor’s bet on Bitcoin is bigger than ever—and so are the stakes.
