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Strategy Considers Selling Bitcoin Amid $12.7 Billion Quarterly Loss

Strategy may sell Bitcoin to cover dividends following a $12.77 billion loss in Q1 2026, indicating a shift in their long-term asset strategy.

Marcus Reid
May 6, 2026 1 min read
Strategy Considers Selling Bitcoin Amid $12.7 Billion Quarterly Loss

Strategy's founder, Michael Saylor, indicated the company might sell a fraction of its Bitcoin assets to facilitate dividend payments on its perpetual preferred shares, following a staggering net loss of $12.77 billion in Q1 2026.

The firm has successfully raised around $8.5 billion through its "digital credit" initiative, which issues high-yield securities to attract yield-focused investors for Bitcoin purchases. Although dividends on these securities are a consistent financial obligation, Saylor's recent comments highlight a shift in strategy that may allow the company to sell a small portion of its Bitcoin instead of offloading shares of MSTR.

"This step to fund dividends will help clarify that the organization and the industry remain stable," Saylor noted.

To meet dividend obligations without resorting to selling common stock, Saylor mentioned that a modest 2.3% annual appreciation in Bitcoin's value would suffice. Previously, Saylor had maintained a steadfast position against selling Bitcoin as the firm focused on long-term accumulation.

CEO Fong Le affirmed that any sales would only occur if it serves the company’s broader objectives. Strategy currently holds approximately 818,334 BTC, valued at about $66.6 billion, having acquired an additional 89,599 BTC in Q1 and 56,235 BTC at the start of Q2.

The reported loss was primarily attributed to "paper" losses from the revaluation of Bitcoin amidst falling prices. Although MSTR shares rose by 1.7% on the previous day, they remain down 26.7% over the past six months, closing at $186.90.

Notably, in December 2025, Strategy established a $1.44 billion reserve aimed specifically for dividend payments, marking the company's first acknowledgment of the potential need to liquidate some Bitcoin holdings.