New SEC Filing Shows Michael Saylor’s $78 Billion Bitcoin Strategy Faces A Major Danger
A recent SEC filing highlights significant risks in Michael Saylor’s Bitcoin-based strategy, despite a $3.9 billion gain this quarter. With over $78 billion in BTC holdings, Saylor’s firm faces high debt and exposure to Bitcoin’s price volatility, potentially threatening sustainability if markets turn.
SEC Filing Exposes Bitcoin Risk to Saylor’s Strategy
Michael Saylor, executive chairman of Strategy (formerly MicroStrategy), shared a recent SEC filing detailing the risks his firm faces from its extensive Bitcoin holdings. According to the document, Bitcoin’s sharp price swings – ranging between $60,000 and $120,000 over the past year – pose a direct threat to the stability of the company’s $78 billion crypto portfolio.
The filing further outlines that Strategy holds over $8 billion in debt and must manage substantial dividend payments. With the majority of company assets in Bitcoin, a sudden market downturn could lead to liquidity issues, including the possibility of selling BTC at a loss to raise funds. “While gains are currently robust, they are susceptible to rapid reversal,” Saylor warned on X.
Massive Gains Despite Volatility
Despite these risks, Strategy posted a $3.9 billion unrealized gain from its Bitcoin holdings in Q3 2025, without acquiring any new BTC during the period. As of the end of September, the firm held 640,031 BTC at an average acquisition price of around $74,000 per coin. With Bitcoin’s market price surpassing $114,000, the portfolio’s value climbed above $73 billion.
The filing also notes the firm raised over $5 billion in new capital, further reinforcing its cash reserves without the need for additional Bitcoin purchases during the quarter. Additionally, new U.S. Treasury tax rules enabled Strategy to defer approximately $1.1 billion in tax expenses, improving short-term fiscal flexibility.
Market Conditions Remain a Double-Edged Sword
Saylor emphasized that while the firm is currently benefiting from Bitcoin’s price momentum, the strategy’s success is tightly tied to continued bullish market conditions. According to the filing, the very factors that drive profits could also result in significant losses if prices decline sharply.
“Nearly $4 billion in gains were achieved without selling a single coin,” Saylor posted. However, these gains remain unrealized, and the company remains vulnerable to sudden shifts in the crypto market.
BTC Price Update
Bitcoin closed Q3 2025 above $114,000—a sharp increase from previous quarters. This surge significantly boosted the valuation of holdings across crypto markets, particularly benefiting Strategy’s large position. At current levels, the company continues to command one of the largest institutional Bitcoin portfolios globally.
