Strategy reveals risk of Bitcoin value decline, default or even bankruptcy In its 8-K filing with the SEC, Strategy disclosed that the company is facing significant financial pressure. If the market value of Bitcoin drops significantly, the company may be forced to sell Bitcoin at a price lower than cost to fulfill its obligations, and may even face default, bankruptcy, or liquidation risks. As of March 31, the company's total debt reached $8.22 billion, with an annual interest expense of $35.1 million and an additional $146.2 million in preferred stock dividends to be paid annually. Its future financing capability is highly dependent on the market value and sentiment of Bitcoin.