Bitcoin Sell-Off: Saylor’s Big Fear?
Michael Saylor’s Strategy Faces Bitcoin Sell-Off Risk to Tackle Debt Woes
Michael Saylor’s firm, Strategy, a major Bitcoin investor, might need to offload some of its crypto stash to handle looming financial pressures. In a filing dated April 7, 2025, the company warned that without quick cash from new loans or stock sales, it could be forced to sell Bitcoin to cover debts.
The filing highlights how Bitcoin’s price swings heavily affect Strategy’s ability to manage its $8 billion debt. For the first quarter of 2025, it’s bracing for a massive $6 billion unrealized loss, even with a $1.69 billion tax break. Annual costs include $35 million in interest and $150 million in dividends, outpacing its software revenue.
As of Saylor’s March 31 X post, Strategy owns 528,185 BTC, bought at an average of $67,458 each, totaling over $35 billion. If funding falls short, it might sell at a loss, especially with Bitcoin now at $76,000—down 10% this week amid Trump’s tariff fallout.
To ease the crunch, Strategy revealed plans on March 10 to raise $2.1 billion by selling perpetual preferred stock with an 8% dividend. This cash would fund operations and more Bitcoin buys, though success still hinges on crypto’s performance.
Despite the gloom, some experts see hope. BitMEX’s Arthur Hayes, in an April 8 Unfolded interview, predicted Bitcoin could climb to $110,000 soon, fueled by expected global rate cuts boosting liquidity.
FAQs
❓Why might Strategy sell its Bitcoin?
To cover $8 billion debt if it can’t secure new funding fast.
❓How much Bitcoin does Strategy hold?
528,185 BTC, bought for over $35 billion at $67,458 each.
❓What’s Strategy’s financial loss for Q1 2025?
An unrealized $6 billion loss, despite a $1.69 billion tax break.
❓How is Strategy raising cash?
By selling $2.1 billion in preferred stock with an 8% dividend.
❓Could Bitcoin’s price save Strategy? investors stay patient?
Yes, if it hits $110,000, as Arthur Hayes predicts with rate cuts.
