Strategy warns that if the market value of Bitcoin drops sharply or affects the ability to perform obligations, it may be necessary to sell BTC to repay debts
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Planet Daily News: Strategy disclosed in its 8-K filing to the U.S. SEC that its total outstanding debt as of March 31, 2025, is $8.22 billion, with annual interest expenses of $35.1 million and an additional $146.2 million in preferred stock dividends. Due to the enterprise software business not achieving positive cash flow, if Bitcoin's market value significantly drops, the company may be forced to sell Bitcoin below cost to meet obligations, increasing default risk and potentially being compelled to enter bankruptcy or liquidation proceedings. The company emphasizes that its future financing capacity is highly dependent on the market value of its Bitcoin assets and market sentiment changes.
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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