At what price will Bitcoin drop for Michael Saylor to start incurring losses? Here is the critical BTC price threshold.

Following the recent decline of Bitcoin, attention has once again turned to the publicly traded MicroStrategy, known for its aggressive Bitcoin buy out strategy led by Chairman Michael Saylor, now rebranded as Strategy(.

Saylor has led MicroStrategy to purchase a total of 528,185 BTC at a total cost of 35.63 billion dollars to date, resulting in an average acquisition price of 67,458 dollars per Bitcoin. According to the latest data, the value of the assets held by the company is approximately 40.61 billion dollars, while the current market price is about 12% below the company's average buy out price.

Despite this position still being profitable on paper, a recent regulatory filing highlights the increasing financial pressure on the company in the event of worsening market conditions.

In a document dated April 7, MicroStrategy stated that "since Bitcoin constitutes a large portion of the assets on our balance sheet, if we cannot timely provide equity or debt financing under favorable conditions or at all, we may need to sell Bitcoin to meet our financial obligations and we may need to conduct such sales at prices below our cost basis or otherwise unfavorable prices."

MicroStrategy expects to record an unrealized loss of nearly $6 billion in the first quarter, but anticipates offsetting this with a $1.69 billion tax benefit. Nevertheless, the statement warned that the path to the company's future profitability is uncertain, especially if Bitcoin prices continue to decline.

"A significant decrease in the market value of our Bitcoin assets may adversely affect our ability to meet our financial obligations," he added.

As of the end of March, MicroStrategy reported approximately 8 billion dollars in debt and is making annual interest payments of 35 million dollars in addition to annual stock dividend obligations of 150 million dollars.