Strategy warns of potential Bitcoin sale to pay off debt

Strategy (formerly MicroStrategy), the largest corporate holder of Bitcoin (BTC), has issued a warning about potential financial difficulties due to a sharp drop in the value of BTC, as reported by Odaily. This decrease might compel the company to sell BTC to pay off its debts. According to a recent 8-K filing with the U.S. Securities and Exchange Commission (SEC), as of March 31, 2025, Strategy is grappling with $8.22 billion in debt, annual interest costs of $35.1 million and must pay $146.2 million in preferred stock dividends each year. The company’s enterprise software business is not generating sufficient cash flow, increasing the risk that it may need to sell BTC at a loss, potentially leading to default or bankruptcy. Currently, Strategy holds 528,185 BTC, purchased at an average price of $67,458 per coin. Meanwhile, Wu Blockchain noted on X that this repayment statement is a routine risk disclosure found in the Q1 2024 10-Q report and previous reports, showing it is not exceptional.