A recent US SEC submission revealed that the strategy of a self-recognized Bitcoin finance company can break the HODL strategy and sell BTC tokens.
Specifically, it was submitted by Chairman Michael Saylor’s company. 8-K Form With the Securities and Exchange Commission on April 7th. Publicly available companies usually submit this form to regulatory authorities when disclosing important events within their organization.
The Strategy filed a Monday form with the US SEC to update investors regarding business activities for the first quarter ended March 31, 2025. This disclosure provided detailed information on the status of Bitcoin acquisition and strategy debt.
Disclosure details raise concerns
Nevertheless, the submission details have attracted attention from the crypto community. Due to the context, the filing stated that in the face of unfavourable market conditions, they could be forced to sell BTC to offset certain financial obligations.
Excerpt from Form 8-K
Surprisingly, this actually brings the possibility that strategies can sell pioneering cryptocurrency stashes. Remember that executive chairman Saylor had previously insisted that the company would do so. Do not sell bitcoin But I will continue to buy the top.
However, the strategy doesn’t easily abandon the sharp and precious Bitcoin stash. The clause in the possible dump is when the price of the asset remains in a negative spiral and new liquidity from the stock sales or debt certificate cannot be secured on a prompt or adverse basis.
On the other hand, such sales will have a serious impact on the financial health of the strategy. 528,185 btc is currently worth $40,644 billion, with an unrealized profit of nearly $5 billion at Bitcoin’s current price of $76,812. In accordance with disclosure, publicly available companies may need to fall below the average cost price of $67,485 or other unfavorable terms, resulting in substantial losses and preventing opportunities to acquire new funds.
Standard disclosure requirements?
Despite skepticism that a recent reveal of disclosure claimed that factions in the Crypto community were standard practices for public companies, particularly those utilizing debt certificates. They argued that this disclosure was always in previous 8-K filing of the strategy.
In fact, the strategy has always added this clause to the US SEC to its previous submission. In the context, the January 6th 8-K Form, which discloses business activities for the fourth quarter 2024, also mentioned this possibility.
On the other hand, potential strategic sales will certainly crash the sentiment of the crypto market. The business development company adopted Bitcoin as a major Treasury protection asset in 2020, constantly piling it up into its flagship cryptocurrency. Following the Bitcoin strategy, it continues to accumulate assets, and Saylor reveals that at some point the company’s Endgame will become a Bitcoin Bank.
