Michael Saylor's firm, Strategy, may be forced to sell part of its Bitcoin reserves to meet mounting financial obligations. A recent filing warned that the company may struggle to meet obligations without new equity or debt funding.
Strategy holds over 528,000 BTC, acquired for more than$35 billion at an average price of$67,458. Despite this, the company expects an unrealised loss of nearly$6 billion in Q1 2025.
With$8 billion in debt,$35 million in annual interest, and$150 million in dividends, the firm faces significant pressure.
In March, Strategy announced plans to raise$2.1 billion through a perpetual preferred stock offering an 8% dividend. It would fund company operations and allow further Bitcoin purchases. Still, its future hinges on Bitcoin's market performance.
Bitcoin is currently trading around$76,000, down 10% over the week. While Trump's tariffs have affected market sentiment, analysts suggest Bitcoin could reach$110,000 as global interest rates fall.