Strategy May Be Forced to Sell Bitcoin to Repay Debts

In Brief:

MicroStrategy warns it could sell Bitcoin to cover debt if market conditions worsen.

The firm holds over 528,000 BTC at an average cost of $67,458.

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MicroStrategy, now rebranded as “Strategy,” has revealed in an SEC filing that it may be forced to sell Bitcoin if the crypto market continues its downward trajectory. The disclosure was included in the company’s latest 8-K form filed on April 7.

“If we are unable to obtain equity or debt financing on favorable terms (or at all), we may be forced to sell Bitcoin to fulfill our financial obligations,” the filing stated, directly contradicting founder Michael Saylor’s long-standing mantra of “never selling Bitcoin.”

The company emphasized that Bitcoin represents the vast majority of its assets, and any sale—especially at a loss—would severely impact its financial stability. As of now, Strategy holds 528,185 BTC, acquired at an average cost of $67,458, amounting to a total investment of roughly $35.6 billion. At current prices, this stash is worth around $40.1 billion.

This warning adds to growing concerns in the market as Bitcoin dips below key levels. Analysts say a further decline could trigger forced selling from institutions heavily exposed to BTC.

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