Strategy, known for holding a significant amount of Bitcoin worth $66.75 billion, faces potential risks that may compel them to sell their Bitcoin holdings.
New accounting rules could require Strategy to pay taxes on its unrealized Bitcoin gains, potentially forcing them to sell some Bitcoin to cover the tax bills.
The company's annual financial obligations, including debt payments and dividends, amount to over $350 million, which could further strain their financial situation.
There is also a risk associated with the security of their Bitcoin holdings, as a failure of their custodian could lead to loss of access to their cryptocurrency assets.