Strategy May Sell Bitcoin Holdings Amid 14% Unrealized Loss

Michael Saylor’s Strategy, a prominent institutional investor in Bitcoin, may soon face the necessity of selling its Bitcoin holdings to meet debt obligations as the price of the cryptocurrency continues to decline. The company has been a staunch advocate for Bitcoin, accumulating a significant amount of the digital asset over the years. However, recent market conditions pose a substantial threat to Strategy’s crypto strategy.

Strategy has filed an 8-K form indicating plans to sell some of its digital assets to offset current losses, following the drop in Bitcoin’s price below $80,000. The primary reason for this move is to repay debts, a standard practice for companies facing financial pressures. The community is concerned that a prolonged bear market could force Strategy to sell its assets, potentially triggering a further downturn in the market. Saylor has gained recognition in the crypto community for his bullish stance on Bitcoin, and Strategy has consistently acquired the cryptocurrency, becoming one of its major holders.

The company currently holds 528,185 BTC, valued at approximately $40.3 billion, purchased at an average price of $67,458 per coin. Following Donald Trump’s election win, Strategy acquired 275,965 BTC at an average price of $93,228, resulting in $4.6 billion in paper losses. Trump’s victory sparked investor interest, with many crypto enthusiasts backing his bid due to anticipated pro-Bitcoin regulations and an end to the Biden administration’s market policies. In a recent filing, Strategy reported a $5.91 billion unrealized loss for its Bitcoin holdings in Q1 2025. Despite a decline in its crypto portfolio in the previous quarter, its unrealized profit increased by 14% to approximately $5 billion.

Strategy’s pause in Bitcoin acquisitions in April, following a significant price crash below the $80,000 mark, has weakened institutional morale. The company’s stock has also faced considerable pressure, falling 11% in the last 24 hours and 20% over the week. Amid global market turmoil due to President Trump’s tariffs, large investors are hesitant to allocate funds to risky assets. Recession fears in the United States and Bitcoin’s persistent correlation with the stock market are major obstacles to institutional demand. Additionally, miner reserves and whale holdings have decreased as investors attempt to hedge against potential losses.