Strategy disclosed in its 8-K filing with the SEC that the company is facing significant financial pressure, and if the market value of Bitcoin significantly declines, it 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.