The company Strategy, founded by Michael Saylor, may have to be forced Bitcoin (BTC) Sell if Bitcoin’s course falls below a certain price.
This may end its long series of Bitcoin purchases. This could also end the “Never Sell Bitcoin” powers of the American entrepreneur Michael Saylor.
Office reveals important document
In a post on X Coin Bureau describes the market conditions under which strategy is forced to sell part of your Bitcoin. The following scenarios may lead to the liquidation of a part of their BTC:
- As soon as Strategy has $ 8.22 billion in debt.
- If you have more than $ 35 million in annual interest costs.
- If the dividends for preferred shares are more than $ 146 million annually.
- If taxes for Bitcoin yields are more than $ 2.28 billion.
Fud or not?
Reactions on X are different. In general, they are on Saylor’s side. This is how Adrian Morris writes that it is simply Fud (Fear, UncertaAnty, Doubt). Clicks to generate in turbulent market conditions:
Another user who uses the pseudonym ‘Presidentpush’ indicates Coin Bureau that these are normal documents on investment risks.
This statement is part of a standard risk disclosure and has so appeceared in the company’s 10-q report for Q1 2024 as well as in filings from 2023 and earlier. It is not a unique or new development.
– Presidentpush (@Presidentpush) April 9, 2025
What kind of document is it?
Each listed company often publishes similar documents. It is called a “Standard Risk Disclosure”, whereby the investor is warned of the risks associated with the investment in the company. The document also describes what a company will do in difficult circumstances and what this means for investors.
So it is a standard component of the general terms and conditions. These are often so extensive that they are hardly read. Except in this case, because Strategy is very well known in the financial world.
What are the consequences of a forced BTC sale?
If Strategy has to sell part of his Bitcoin, this is not very bad for the million dollar company. It suffers at most facial loss because of the statement “Never Sell Bitcoin”. In this case, the company pays for ongoing operating costs from the proceeds of Bitcoin sales.
Strategy runs the risk if Bitcoin’s course continues to drop. Maybe more must then be sold. This ensures a kink in the company’s reputation and may drop the number significantly.
Since the company has so much Bitcoin, a large number of sales can also lead to a strong drop in the cryptocurrency. Is Strategy a victim of the cryptocrash? Time will show it.