Strategy Opens Possibility of Selling Bitcoin

Strategy, led by Michael Saylor, has hinted at the possibility of selling Bitcoin (BTC). Strategy is the company that holds the most Bitcoin among single companies in the United States.

On the 7th (local time), Strategy submitted a report to the U.S. Securities and Exchange Commission (SEC) stating, "A significant drop in the market value of Bitcoin holdings could negatively impact our ability to fulfill financial obligations." Strategy stated, "This risk is particularly likely to materialize when Bitcoin prices trade below the recent book value or purchase price on financial statements."

In the report, Strategy opened up the possibility of selling Bitcoin. Strategy stated, "Since Bitcoin constitutes most of our financial statement assets, we may need to sell Bitcoin to fulfill financial obligations if we fail to secure funding," adding, "In such cases, there is also the possibility of selling at a price below cost or at an unfavorable price." Furthermore, "Selling Bitcoin could have a significant adverse impact on our performance and financial condition and could hinder our ability to secure additional funding in the future," and "If we fail to secure additional funding on favorable terms in a timely manner or sell the Bitcoin we hold at the necessary price, it could lead to failure to fulfill debt repayment and cash dividend obligations."

Strategy also mentioned the scale of its debt. Strategy stated, "As of the 31st of last month, outstanding debt is $8.22 billion," and "The annual contractual interest expense is $35.1 million." It added, "The software (SW) business has not recently generated positive cash flow," and "It may not generate enough cash flow to meet financial obligations in the future."

Meanwhile, Strategy holds about 530,000 Bitcoins. The average purchase price of Strategy's Bitcoin is approximately $67,000. According to CoinMarketCap, as of today, Bitcoin is trading at around $79,000.