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Cryptocurrency News Articles
MicroStrategy (MSTR) (formerly MicroStrategy) noted in a regulatory filing on April 7.
Apr 12, 2025 at 03:10 am
never selling your Bitcoin lost a little oomph this week, as the company he co-founded clarified that, actually, there are some circumstances in which it might need to unload some of its stockpile.
MicroStrategy (NASDAQ:MSTR) may sell some of its Bitcoin if it faces pressing obligations, such as interest payments on loans or principal repayments, the company noted in a regulatory filing on Friday.
Those obligations include the interest it owes on $8.21 billion in loans; principal repayments on those loans, which start next year; leases on office space; and dividends owed to some of its investors, crypto news site Protos reported.
MicroStrategy is known for its massive Bitcoin holdings, which it began accumulating in 2015. The company has never sold any of its Bitcoin, and CEO Michael Saylor has repeatedly said that he believes in the long-term value of the cryptocurrency.
However, the company's filings indicate that it might be forced to sell some Bitcoin if it can no longer meet its obligations.
"If, in the future, the company were to sell a portion of its bitcoin to pay interest or principal on the debt, it would recognize a gain or loss on the sale in the period of sale," the filing stated, according to Protos.
MicroStrategy's Bitcoin holdings are a significant part of its overall value. At the end of the first quarter, MicroStrategy's had an unrealized loss of $5.91 billion on its digital assets, which include Bitcoin and other cryptocurrencies.
Those losses are reported in its earnings release and shareholder letters. However, the company does not report the amount of its cryptocurrency holdings or any gains or losses from sales in its earnings reports.
Instead, it discloses that information in its Form 10-Q and 10-K reports, which are filed every three months and annually, respectively.
The company's preference is to avoid selling any Bitcoin, and it's hoping to defer any principal loan repayments for as long as possible, according to Protos.
The publication noted that if MicroStrategy were to sell any Bitcoin, it would likely try to sell the smallest amount possible to meet its immediate obligations.
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