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During Strategy's Q1 2026 earnings call, Executive Chair Michael Saylor floated the possibility of selling a portion of its BTC holdings to fund the company's swelling dividend obligations.
What's the Scoop?
- Potential Sales: Contrary to Michael Saylor's longstanding "never sell" your BTC advice (the Strategy founder went as far to advise that acolytes sell their kidneys before selling BTC), his digital asset treasury comapny may do just that to fund its increasing dividend obligations related to STRC, a “perpetual preferred stock” that currently pays its holders 11.5% annual dividends. During Strategy's Q1 2026 earnings call last night, Saylor hinted at the possibility, saying, "We will probably sell some bitcoin to pay a dividend just to inoculate the market and send the message that we did it."
- Accretive Sales: CEO Phong Le reiterated the message, claiming that Strategy actively manage the balance sheet to maximize value of bitcoin per share. "We’re not going to sit back and just say, 'We'll never sell the bitcoin.' We want to be net aggregators of bitcoin – increasing our total bitcoin, but more importantly, increasing our bitcoin per share because we think that is what is going to be most accretive long term for MSTR," Phong said.
- Dividend Pressure: Strategy has committed to making nearly $1.5B in annual dividend and interest payments across various categories of preferred equity and bond holders, with approximately two-thirds due to holders of its STRC instrument. The BTC DATco has just 18 months of dividend coverage given current cash reserves, but could extend its runway to about 45 years by selling BTC holdings (assuming the token's price holds constant).
- Stock Drop: MSTR tumbled 5.5% in after-hours trading following the earnings release but later clawed back most of the losses, stabilizing around 1% below the yesterday's close at the time of publication. STRC has failed to trade its $100 liquidation threshold since April 14, a key level at which Strategy can sell the instrument for cash.
JUST IN: Michael Saylor proposes selling
— Polymarket (@Polymarket) May 5, 2026Bitcoin to fund Strategy's dividends.
48% chance Strategy sells any Bitcoin this year. https://t.co/hjMjQv95VI
