MicroStrategy warns that a significant fall in Bitcoin's market capitalization may affect its ability to meet obligations, and it may need to sell BTC to repay debts.

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Odaily News MicroStrategy disclosed in an 8-K filing submitted to the U.S. SEC that as of March 31, 2025, its total outstanding debt amounts to $8.22 billion, with annual interest expenses of $35.1 million, and an additional $146.2 million in preferred stock dividends to be paid each year. Due to the enterprise software business not generating positive cash flow, if the market capitalization of Bitcoin significantly falls, the company may be forced to sell Bitcoin at a loss to meet obligations, increasing the risk of default, and it may even be compelled to enter bankruptcy or liquidation proceedings. The company emphasizes that its future financing capabilities are highly dependent on changes in the market value of its Bitcoin assets and market sentiment.

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