Strategy Might Sell Bitcoin as $6B Loss and Debt Threaten Its Holdings

Strategy may be forced to sell Bitcoin after reporting $6B loss and facing $8.2B in debt obligations.

Fridah Kangai
April 10, 2025
8:30 pm

Fridah Kangai

Fridah Kangai is a dedicated crypto journalist with a sharp eye for market trends, blockchain innovation, and digital asset movements. She specializes in breaking down complex topics into clear, engaging stories for both seasoned investors and curious newcomers. With a passion for decentralization and a pulse on the ever-evolving crypto space, Fridah delivers timely, accurate, and insightful coverage. Her work bridges the gap between technology and everyday understanding in the world of cryptocurrency.

Strategy may offload thousands of BTC as debt and losses mount in Q1 2025.
SEC filing reveals company could sell Bitcoin below purchase cost to stay afloat.
$6B unrealized loss and $8.2B debt put Strategy’s crypto strategy under pressure.

Due to rising financial constraints Strategy has revealed plans to potentially sell some of its Bitcoin assets. The U.S. Securities and Exchange Commission received a detailed disclosure through the 8-K document filed by the company.

According to the filing, Strategy is facing a combination of falling Bitcoin prices, rising debt obligations, and tightening cash flow. The company remains unable to obtain new financing through either debt or equity therefore it faces a potential sale of Bitcoin to meet its current financial requirements.

The company possesses 528185 Bitcoin which the management team bought for an average price of $67,458 per coin. Strategy’s Bitcoin investment maintains substantial worth at approximately $82,000 yet its past market fluctuations will produce an $6 billion unrealized loss which will appear in their first-quarter financial statements for 2025.

Strategy’s financial challenges are intensified by its significant debt burden and recurring liabilities. The company maintains $8.2 billion worth of debt obligations which require $35 million annual interest payments and a total of $150 million in preferred dividend commitments.

In March, the firm attempted to raise $2.1 billion through a perpetual preferred stock offering that carried an 8 percent yield. Strategy had launched this offering to fund operational costs and simultaneously increase its Bitcoin reserves but the success of the initiative remains uncertain.

Debt Load and Market Instability Could Force Bitcoin Liquidation

For solving their short-term liquidity needs Strategy must sell approximately 2,318 Bitcoin tokens based on forecasted conditions. Under deeper financial obligations the company has predicted it would need to sell up to 12,800 BTC through liquidation. The latest filing presents a full Bitcoin selloff as potential but does not specify upcoming operational changes.

The Bitcoin market experienced a brief price decline this week which increased financial pressures but rebounded to establish itself close to $82,000. Economic scenario instability worldwide together with trade policy talks led by former President Donald Trump has caused market disruptions.

Executive Chairman Michael Saylor previously insisted on “never selling” Bitcoin but the latest filing exhibits moderate marketplace revisions. Belief in Bitcoin as a long-term opportunity currently clashes with pressing financial requirements which demands that Strategy reevaluate its Bitcoin plan.

Strategy announced plans to sell Bitcoin which indicates intensified financial strain on the company’s financial structure. This move represents an extensive reversal from the company’s traditional stance while showing that its powerful Bitcoin investment strategy creates increasing financial dangers.

Also Read: Strategy Inc. Boosts Bitcoin Holdings With $1.92 Billion Purchase of Over 22,000 BTC