Should Michael Saylor really be selling Bitcoin now?

Not long ago it was dismissed as an April Fool's joke, but these days Michael Saylor's Bitcoin development firm Strategy appears to be in real trouble.

Not long ago it was brushed off as an April Fool's joke, but these days Michael Saylor's Bitcoin development firm Strategy appears to be in real trouble. The sharp BTC price correction in recent weeks has clearly gripped the company.

Due to the trade war unleashed by Donald Trump, the leading crypto asset is currently trading at only $76,500 at the time of writing. That amounts to roughly a 30% drop from its January mid-year high.

In a report filed with the U.S. Securities and Exchange Commission (SEC), Strategy warns that, without access to cheap internal or external financing, it could be forced to liquidate Bitcoin at a loss or on unfavorable terms.

In the publicly accessible document, the company emphasizes that “a significant decline in the market value of our Bitcoin inventories could affect our ability to meet our financial obligations.”

After the most recent add-ons, last week, Strategy now holds 528,185 BTC, making it by far the largest corporate hodler, with a total value of $40.4 billion. In second place is mining company MARA Holdings with 47,600 BTC.

The MSTR stock price is currently $238, down 11% from the day before. Since the start of the year, Strategy’s price has fallen about 21%. However, this could also be seen as an attractive entry point.

The much-discussed 8-K-report is a standard legal document. Like any other company, Strategy could go bankrupt, but with an average Bitcoin purchase price of $67,458 it is still in the green.

Still, amid the ongoing crypto correction, there have been weeks of rumors that Strategy could be forced to liquidate soon.