Michael Saylor Just Said Strategy Might Sell Bitcoin. What Changed?

TLDR

• Strategy reported a $12.54 billion Q1 net loss, driven by unrealized losses as Bitcoin fell 23.8% in Q1
• Michael Saylor suggested selling some Bitcoin to fund dividend payments for the first time
• The company holds 818,334 BTC at an average cost of $75,537, worth around $66.7 billion
• Strategy has roughly 18 months of dividend coverage against $1.5 billion in annual obligations
• Stock fell over 4% after-hours; Bitcoin slipped below $81,000 following the announcement

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Strategy, the world’s largest publicly traded corporate Bitcoin holder, reported a $12.54 billion net loss for the first quarter of 2026. The loss was driven mostly by unrealized losses on its Bitcoin holdings after the price dropped 23.8% during the quarter.

Executive Chairman Michael Saylor made a surprising comment during the Q1 earnings call. He suggested the company may sell some of its Bitcoin to cover dividend payments.

This marks the first time Saylor has floated the idea of selling Bitcoin. It directly contradicts his long-held “never sell” stance on the asset.

In February 2026, Saylor told CNBC he expected Strategy to “buy Bitcoin every quarter forever.” He also said the company could survive a Bitcoin price drop to as low as $8,000 without needing to sell.

Strategy currently holds 818,334 Bitcoin at an average acquisition cost of $75,537 per coin. The total position is worth approximately $66.7 billion.

The company has around $1.5 billion in annual dividend and debt obligations. Saylor said Strategy has roughly 18 months of coverage based on its current USD reserves.

He described the approach as a credit-based model: borrow to buy Bitcoin, let it grow in value, then sell portions to meet financial commitments.

Preferred Stock and the Stretch Instrument

Strategy has been using dividend-paying perpetual preferred stock, including its Stretch product, to fund recent Bitcoin purchases. Stretch helped finance a large part of the 145,834 Bitcoin Strategy has bought so far in 2026.

Several Bitcoin-focused decentralized finance protocols, including Pendle and Saturn, have begun tokenizing Stretch’s 11% monthly dividends. This allows them to be traded on-chain, improving liquidity.

Bitcoin-Backed Yield Accounts on the Horizon

Saylor said he expects neobanks to soon offer Bitcoin-backed digital yield accounts. He said these could offer returns of up to 8%, which he argued is higher than most stablecoin yields.

He noted that around three dozen related initiatives have emerged in just the past few weeks, compared to none eight to twelve weeks ago.

Following the earnings call, Strategy’s stock fell 4.33% in after-hours trading to $178.80.

Bitcoin also slipped below $81,000 after the announcement.

Strategy is on track for a stronger Q2, with Bitcoin up nearly 20% to $81,250 since April 1.

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