Michael Saylor announced that Strategy will likely sell some of its Bitcoin holdings to fund dividend payments. This is the first time the company has indicated it might sell Bitcoin, reversing its previous commitment to never do so.
Summary
- Strategy executive chairman Michael Saylor floated selling bitcoin to fund dividend obligations during the company’s Q1 2026 earnings call on May 5.
- Strategy holds 818,334 BTC and faces approximately $1.5 billion in annual dividend obligations across its preferred stock instruments.
- MSTR stock fell more than 4% in after-hours trading following the call, while bitcoin briefly dipped below $81,000.
During a recent earnings call, Strategy’s executive chairman, Michael Saylor, suggested the company might sell some of its Bitcoin holdings to fund dividend payments. This is the first time Strategy has indicated it might deviate from Saylor’s long-held stance of never selling its Bitcoin.
During an investor call, Saylor explained that MicroStrategy might sell some of its Bitcoin holdings to fund a dividend payment. He described this as a way to demonstrate responsible financial management and reassure the market. The strategy, he said, involves purchasing Bitcoin with credit, allowing its value to increase, and then selling it to cover the dividend.
Q1 results and market reaction
As an analyst, I’m reporting that Strategy experienced a net loss of $12.54 billion in the first quarter of 2026. Despite this, the company maintains a significant Bitcoin holding of 818,334 coins, with an average purchase price of $75,537 per coin. We’re also tracking substantial dividend obligations related to their preferred stock, totaling around $1.5 billion annually. A key component of this is the STRC product, which now has an outstanding market value of $8.5 billion and carries an 11.5% dividend rate.
After the company’s recent call, MicroStrategy (MSTR) stock dropped over 4% in after-hours trading, and Bitcoin fell below $81,000. However, during the call, Michael Saylor strongly refuted claims made by short-sellers, stating he would welcome the opportunity to prove them wrong if they believed MicroStrategy would need to sell stock to fund its dividends.
Strategy had previously maintained it would never sell its bitcoin, with its CEO, Saylor, characterizing it as a long-term, growing asset.
So far in 2026, the company has raised $11.68 billion by selling stocks, and they’re using that money to buy bitcoin. This move indicates a significant change in how the company decides where to invest its funds, now including direct bitcoin purchases.
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2026-05-06 20:46