Strategy Faces Financial Challenges Amid Bitcoin Market Volatility

According to Odaily, Strategy has disclosed in an 8-K filing with the U.S. Securities and Exchange Commission that as of March 31, 2025, the company has outstanding debts totaling $8.22 billion. The annual interest expenses amount to $35.1 million, and it is required to pay $146.2 million annually in preferred stock dividends. The company has highlighted concerns regarding its enterprise software business, which has not achieved positive cash flow. If the market value of Bitcoin significantly declines, Strategy may be compelled to sell Bitcoin at a loss to meet its obligations, increasing the risk of default. This situation could potentially lead to bankruptcy or liquidation proceedings. Strategy emphasized that its future financing capabilities are heavily reliant on the market value of its Bitcoin assets and shifts in market sentiment.