Michael Saylor’s Strategy might require selling Bitcoin (BTC) to meet debt obligations as the asset price continues to go down. The company has remained bullish on the top crypto for several years, adding a large chunk to its balance sheet. However, recent headwinds significantly threaten the company’s crypto strategy. BTC Price Crash Limits Strategy’s Masterplan Strategy has reportedly filed an 8-K filing with plans to offload some of its digital assets. This will be done to offset current losses after the price of Bitcoin dropped below $80k. Debt repayment is at the fore of the disclosure, although it should be noted that it is a standard practice. A section of the community fears that a sustained bear market can see the institutional giant sell its assets and spark a prolonged downturn. In the past two years, Saylor has gained popularity in the crypto community for his bullish Bitcoin stance. Strategy has consistently acquired Bitcoin quarter-to-quarter becoming a major holder. The company has 528,185 BTC valued at approximately $40.3 billion purchased at an average price of $67,458 per coin. After Donald Trump’s election win, Strategy bought 275,965 BTC at an average price of $93,228. This means the company faces $4.6 billion in paper losses. President Trump’s win ignited investor appetite after most crypto enthusiasts backed his bid. Industry experts pointed to pro-Bitcoin regulations as well as an end to the Biden administration’s war on the market. In a recent filing, the company posted a $5.91 billion unrealized loss for its Bitcoin stash in Q1 2025. While its crypto portfolio fell in the previous quarter, its unrealized profit jumped 14% to approximately $5 billion. Institutional Morale Weakens Strategy remains a top driver of institutional sentiments, and with a pause in purchases, several firms will reconsider their position. The company paused BTC acquisitions in April following a major price crash below the $80k mark. The company’s stock has also faced significant pressure, falling 11% in the last 24 hours and 20% over the week. Amid the global meltdown due to President Trump’s tariffs, large investors are skeptical of moving funds to risky assets. Recession fears in the United States and Bitcoin’s persistent correlation with the stock market are major hurdles to slowing institutional demand. Miner reserves and whale holdings also dropped in an attempt to hedge against losses.