Strategy Company, led by Michael Silver, one of the largest Bitcoin (BTC) holders, may need to sell some of its Bitcoin reserves to meet its financial obligations. If timely financial resources are not secured through capital raising or loans, the company will be forced to sell Bitcoins. The company, with most of its assets in Bitcoin, is heavily influenced by the price fluctuations of this cryptocurrency in its ability to pay debts. It is expected to report unrealized losses of $6 billion for the first quarter of 2025. Strategy currently has about $8 billion in debts and needs to pay $35 million in interest and $150 million in stock dividends annually, while its software division does not generate enough income to cover these expenses. To address the liquidity crisis, Strategy announced on March 10 that it intends to raise about $2.1 billion by offering perpetual preferred shares with an 8% profit. These funds will be used to support the company’s operations and buy more Bitcoins. At the time of writing this news, Bitcoin is trading around $77,000, a 9% decrease from last week. Despite concerns, some analysts like Arthur Hayes, co-founder of BitMEX, predict that the price of Bitcoin will reach $110,000 or more in the coming months, especially if central banks reduce interest rates and liquidity increases.
