Michael Saylor’s software company, Strategy, faces a potential financial crisis if it can’t secure additional funding. The company disclosed in an April 7 regulatory filing that it might have to sell some of its Bitcoin holdings to cover its debts, as the value of Bitcoin has impacted its ability to settle its obligations. According to their filings, Strategy expects to report a nearly $6 billion unrealized loss by Q1 2025 despite a $1.69 billion tax benefit. The company owes around $8 billion in debt and faces significant pressure from ongoing interest payments and dividends. Its software business hasn’t been generating enough revenue to cover its expenses, leading to this dire financial situation. Saylor confirmed on March 31st that Strategy holds a large Bitcoin stake valued at over $35 billion, purchased at an average price of $67,458 per coin. However, if Strategy can’t secure additional funding, selling Bitcoin might be necessary at significantly lower prices than their initial investment. This potential sale has raised concerns, although similar warnings have been previously included in company filings, indicating it’s not an unusual occurrence. Strategy addressed this liquidity crisis on March 10th by announcing a plan to raise $2.1 billion through the sale of perpetual preferred stock. This funding will primarily support corporate operations and purchasing more Bitcoin. The preferred stock offers an 8% dividend which may alleviate the pressure, but their future remains contingent on how well Bitcoin performs. Bitcoin currently trades at approximately $76,000, down 10% over the past week, although some analysts remain optimistic about its near-term price increase.