MicroStrategy, under the direction of Chairman Michael Saylor, has acquired a substantial 528,185 BTC at an average purchase price of $67,458 per coin.
Although the current value of MicroStrategy's Bitcoin stash is above its cost with an estimated worth of $40.61 billion, the recent dip in market prices has raised concerns about the company's financial flexibility.
A regulatory filing revealed that if MicroStrategy cannot raise capital on favorable terms, it may be forced to sell some of its Bitcoin holdings at a loss or under unfavorable market conditions, posing a risk to its long-term balance sheet.
MicroStrategy anticipates booking an unrealized loss of approximately $6 billion for Q1, which could further jeopardize its ability to meet financial commitments if Bitcoin's price continues to trend downward.