Strategy lent money to buy Bitcoin. As Bitcoin’s price drops, the company’s problems are growing by the minute

Until recently, Michael Saylor was the crypto world’s biggest hero. That’s because he decided in 2020 to transform his small software company, MicroStrategy (now Strategy), into the world’s biggest Bitcoin whale. As his plan worked so well in 2020 and 2021, he began borrowing more and more money to finance this Bitcoin buying strategy. That continued to work very well in 2023, 2024, and mostly in 2025. But now that the market thinks we’ve seen the peak, Strategy is finding itself in increasingly dire straits. Will Strategy fall victim to the Bitcoin bull run of 2024-2025?

Saylor

When I read the many articles in the United States about Michael Saylor and Strategy, I keep thinking of Sam Bankman Fried and FTX. His company fell victim to the end of the 2020-2021 Bitcoin bull run and went under in November 2022. Will Strategy fall victim to the end of the 2024-2025 Bitcoin bull run?

The problem for the company is that it already has so many outstanding loans that it will soon be asked to pay interest on them, and the falling Bitcoin price is making it increasingly difficult for Saylor and his associates to make a profit. Not only does the company have to ensure that the Bitcoin price remains above its return on investment (around $66,000), but of course, they also have to pay their personnel costs and buildings.

That’s why Strategy recently admitted that if the Bitcoin price were to fall further, they might sell some of their Bitcoins for the first time in their history, which would obviously be a very bad sign for the market.

After being the biggest loser of the DotCom crisis, will Saylor now become the loser of the Bitcoin bear market of 2025?