news 
Strategy’s Bitcoin Holdings at Risk, May Sell BTC to Meet Obligations
Business intelligence firm Strategy has revealed that its massive Bitcoin holdings are at risk of being sold to meet debt obligations. The company, which boasts the largest Bitcoin treasury in the world, may be forced to abandon its founder Michael Saylor’s stance on never selling BTC if market conditions persist.
In a recent regulatory filing with the US Securities and Exchange Commission (SEC), Strategy disclosed that it faces liquidity issues due to its heavy reliance on Bitcoin as its primary asset. The company has accumulated an astonishing 528,185 BTC, which is valued at approximately $40,119 billion based on the current market price.
However, the significant drop in Bitcoin’s value has resulted in an unrealized loss of nearly $6 billion for the first quarter of 2025. This sudden downturn has put immense pressure on Strategy to secure equity or debt financing in a timely manner and on favorable terms.
The company’s dependence on its software business for cash flow is another major concern, as it struggles to generate sufficient revenue to meet its financial obligations. With over $8 billion in debt, including substantial annual interest payments and dividend obligations on preferred stock, Strategy may be forced to liquidate its BTC holdings at a loss if it fails to secure timely financing.
The filing also highlighted the risks associated with the company’s Bitcoin strategy, which has been marked by extreme volatility. The ongoing challenges of balancing the massive digital asset portfolio with financial obligations could exacerbate Strategy’s financial struggles should the market value of Bitcoin continue to decline.
As Bitcoin’s price dropped below $75,000 earlier this week, the cryptocurrency market experienced a significant correction. However, it managed to recover slightly later in the day as President Trump’s new global tariffs came into effect. Despite the brief rally, several top tokens experienced declines.
The retreat of traders from major cryptos has erased the gains made during Tuesday’s rally as Trump continued to push ahead with his aggressive changes to global trade.
Source: https://cryptopotato.com/strategys-bitcoin-holdings-at-risk-may-sell-btc-to-meet-obligations/
