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Strategy has one of the most significant corporate bitcoin reserves, with a bitcoin reserve of around 597,000 as of June 2025. The firm purchased this stake at a value of $42.4 billion. The unrealized profit is significant, about $51.5 billion at current market prices. Irrespective of this increase, the recent regulatory filing by the company reads that several risks would compel the company to sell some of its holdings.
As Strategy filed with the SEC on July 7, it may consider selling Bitcoin to cover future tax liabilities. The new fair value accounting rule (ASU 2023-08) requires companies to recognize unrealized income from digital assets, which could lead to tax obligations. Beginning in 2026, Strategy will be subject to a 15% Corporate Alternative Minimum Tax (CAMT) on these gains.
The company stated that it may be compelled to offload Bitcoin or raise capital in the form of either debt or equity to cover taxes. This could occur even in an adverse market environment, which would make its profitability volatile.
Strategy employs third-party custodians to protect and retain its Bitcoin. As these custodians protect the assets, the firm has revealed that in the event a custodian goes bankrupt, it will be subject to general unsecured creditors. Under these circumstances, Strategy will lose the right to own its Bitcoin holdings.
In addition to the risks associated with being in storage, the company must bear a substantial financial burden. It already has $8.2 billion in convertible debt and $ 3.4 billion in preferred stock. The interest and dividend payments total more than $ 350 million annually. Strategy is a company with an underperforming software business that does not generate a significant cash flow, which is why Strategy requires external funding to support its business operations.
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Strategy's share capital has liabilities that add pressure to its liquidity. There are various types of stock with prescribed dividend obligations (STRK, STRF, and STRD). Any defaults in payments would attract monetary fines or administrative issues, such as potential loss of board control.
The firm remains open to more extensive macroeconomic developments. Fluctuations in Bitcoin prices, interest rates, liquidity, and regulatory policy may impact its course of operation and the valuation of its assets.
