A recent filing with the US SEC revealed that the self-acclaimed Bitcoin Treasury firm Strategy could break its HODL strategy and sell its BTC tokens.
Specifically, the Michael Saylor-chaired firm filed an 8-K form with the US Securities and Exchange Commission on April 7. Publicly traded companies usually submit this form to the regulator when disclosing significant events within the organization.
Strategy filed the Monday form with the US SEC to update investors on its business activities in the first quarter, which ended on March 31, 2025. The disclosure provided detailed information on the Bitcoin acquisitions and the status of Strategy’s indebtedness.
Detail of the Disclosure Raises Concerns
Nonetheless, a detail of the submission has caught the crypto community’s attention. For context, the filing stated that Strategy could be forced to sell its BTC to offset certain financial obligations in the face of adverse market conditions.
Excerpt from the Form 8-K
Remarkably, this brings to reality the possibility that Strategy might sell its stash of the pioneering cryptocurrency. Recall that executive chairman Saylor had earlier insisted that the company would never sell its Bitcoin but would continue to buy the top.
However, Strategy would not easily relinquish its keenly treasured Bitcoin stash. The clause for its probable dump would be if the asset’s price sustains its downside spiral and it fails to secure new liquidity from equity sales or debt instruments either promptly or at unfavorable terms.
Meanwhile, such sales would have severe implications for Strategy’s financial health. Its 528,185 BTC, currently worth $40.64 billion, has an unrealized profit of nearly $5 billion at Bitcoin’s current price of $76,812. Per the disclosure, the publicly traded firm may be required to sell below its average cost price of $67,485 or other unfavorable conditions, incurring substantial losses and hampering its chance at acquiring new funding.
Standard Disclosure Requirements?
Despite the skepticism that the disclosure, which recently came to light, stirred, a faction of the crypto community argued that it is standard practice for publicly traded companies, especially those leveraging debt instruments. They argued that this disclosure had always been on Strategy’s previous 8-K filings.
Indeed, Strategy had always added this clause to its previous filings with the US SEC. For context, its January 6 8-K form, disclosing its business activities for the fourth quarter of 2024, also mentioned this possibility.
Meanwhile, a probable Strategy sell will surely crash the crypto market sentiments. The business development firm adopted Bitcoin as its primary treasury reserve asset in 2020 and has incessantly piled into the flagship cryptocurrency. Per its Bitcoin strategy, it would continue to accumulate the asset, with Saylor disclosing at one point that the firm’s endgame is to become a Bitcoin bank.
