MicroStrategy May Sell Bitcoin to Fund Dividend; Shares Fall

MicroStrategy said it may sell a portion of its 818,334 Bitcoin to fund dividend payments, reversing a long-standing ‘never sell’ stance after comments from executive chairman Michael Saylor on the company’s Q1 2026 earnings call. The remarks coincided with a drop in the stock in after-hours trading.

On the call, Michael Saylor described buying Bitcoin with borrowed funds, allowing it to appreciate, and then liquidating some holdings when cash is needed to pay dividends. ‘We will probably sell some Bitcoin to pay a dividend just to inoculate the market and send the message that we did it,’ he said, later adding, ‘You buy bitcoin with credit, you let it appreciate, and then you sell bitcoin to pay the dividend.’

Chief executive Phong Le told investors the company would consider selling Bitcoin ‘when it’s advantageous to the company’ while aiming to remain a net Bitcoin aggregator. He said management will evaluate sales that are accretive to Bitcoin per share and that the firm will not maintain an absolute rule against selling.

MicroStrategy reported a $12.54 billion net loss for the quarter. The firm holds 818,334 Bitcoin at an average purchase cost of about $75,537 and is the largest publicly traded corporate holder of the asset.

Market data showed the stock closed higher during regular trading but fell more than 4% in after-hours trading following the comments. Prediction markets priced roughly a 48% chance that the company would sell some Bitcoin by the end of 2026.

Company executives described the approach as a way to balance Bitcoin accumulation with corporate financing needs, including using sales to raise cash for dividends or to buy down debt if those actions increase Bitcoin per share.