Amid the bleeding market situation, Strategy (formerly MicroStrategy) is reportedly considering selling some of its Bitcoins to repay debts.
Michael Saylor’s Bitcoin Sell-off ‘Strategy’?
Strategy submitted an 8-K form to the US Securities and Exchange Commission (SEC) on April 7, which states that if the price of Bitcoin continues to fall, Strategy may be forced to sell its Bitcoin holdings to repay debts, breaking CEO Michael Saylor’s promise to “never sell Bitcoin.”
In the 8-K form, Strategy shared that since Bitcoin constitutes the vast majority of assets on the company’s balance sheet, if they are unable to obtain equity or debt financing on favorable terms (or at all) in a timely manner, the company may be forced to sell Bitcoin to meet financial obligations and may have to sell it at a price below cost or other unfavorable prices.
Since Trump won the election in November 2024, Strategy has bought 275,965 BTC (US$25.73 billion) at an average price of US$93,228, and this portion has suffered a floating loss of US$4.6 billion.
According to StrategyTracker data, Strategy currently holds 528,185 BTC, with an average cost price of US$67,458 and a value of US$40.119 billion.
Strategy’s contemplation of a Bitcoin sell-off seems to be triggered primarily by the global market situation, which is currently in a scare phase due to the US’s tariff war on countries. With the fear of recession already hovering on a global scale, the crypto industry, too, has been affected. The global crypto market cap is $2.39 trillion, a 5.53% decrease over the last day. Total crypto market volume over the last 24 hours has gone down by over 40%, to $118.85 billion. As of now, Bitcoin is trading at $75,243.41, after a dip of 5.76% in the past 24 hours.
Also Read: Michael Saylor’s MicroStrategy Acquires $2B in Bitcoin
