MicroStrategy may sell Bitcoin to fund dividends
After a $12.54 billion Q1 loss, CEO Michael Saylor told analysts the company will likely sell some of its 818,334 Bitcoin to fund dividend payments.
On the Q1 2026 earnings call, CEO Michael Saylor told analysts MicroStrategy will likely sell a portion of its 818,334 Bitcoin holdings to fund dividend payments. He added the company would act “just to inoculate the market, just to send the message that we did it.”
CFO Phong Le confirmed any sale would proceed only if it increased Bitcoin per share. The firm recorded a $14.46 billion unrealized markdown on its Bitcoin position after the token fell from roughly $87,000 to about $68,000 during the quarter. MicroStrategy holds 818,334 BTC at an average cost of $75,537 per coin.
The company reported a $12.54 billion net loss for the quarter and has about 18 months of cash on hand relative to roughly $1.5 billion in annual dividend obligations. Saylor presented calculations showing Bitcoin would need to appreciate about 2.3% annually for small, periodic sales to sustain the STRC dividend indefinitely without large, sustained liquidations.
MicroStrategy’s stock fell after the call as investors reacted to the possibility of sales from one of the largest corporate Bitcoin holders. Bitcoin posted its worst opening quarter since 2018, declining more than 23% amid ETF outflows, tariff concerns and a hawkish Federal Reserve.
Saylor’s comments mark a reversal from earlier public statements. In 2024 and early 2025 he posted on social channels urging holders not to sell, including a Feb. 2 post reading “Never sell your Bitcoin,” a Feb. 3 list of “Rules of Bitcoin” that included buying and refusing to sell, and later posts about buying more Bitcoin than short sellers could sell.
Economist Peter Schiff reiterated his longstanding criticism of MicroStrategy’s model, calling the structure comparable to a Ponzi and questioning whether the dividend calculations hold without ongoing Bitcoin price gains. He has previously described the equity as a scam.
MicroStrategy has converted a portion of its treasury into Bitcoin over several years and remains one of the largest corporate holders. Management said it will provide further details on any disposals, including timing and size, in future reporting periods.
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