Strategy may sell part of its Bitcoin holdings to pay dividends on its perpetual preferred shares, according to the company's founder Michael Saylor.
Tune into @Strategy's Q1 Earnings Call live now on X. We'll cover:
— Strategy (@Strategy) May 5, 2026
-Q1 financial results
-Digital Credit $STRC
-Digital Equity $MSTR
Followed by a live Q&A!https://t.co/j4rKKAvU0A
STRC is part of Strategy's "digital credit" initiative. The company issues high-yield securities to attract capital from yield-focused investors, which it then uses to purchase Bitcoin.
Since its launch, this instrument has generated approximately $8.5 billion for the firm.
Dividends on these securities are a regular obligation. While Strategy has primarily financed its Bitcoin purchases through equity and debt issuance, the company now has more flexibility, its management emphasized during the Q1 earnings call.
Executives noted that if necessary, dividends could be covered not by selling MSTR shares, but by a small portion of Bitcoin reserves.
"We will likely take this step to fund dividends, […] to make it clear that we did this. Everyone will understand that the organization is fine, Bitcoin is fine, the industry is fine, and the world hasn't collapsed," Saylor remarked.
He added that with the current treasury volume, Bitcoin only needs to appreciate about 2.3% annually for Strategy to meet its dividend obligations on STRC from its reserves without selling common stock.
Shift in Position and Financial Results
Previously, Saylor had repeatedly emphasized that the company did not intend to sell Bitcoin and was building a strategy around long-term accumulation of the first cryptocurrency.
CEO Fong Le clarified that Strategy would sell coins if it benefits the business. The goal, he stated, remains the same: to increase reserves, boost the number of Bitcoins per share, and remain a net accumulator of digital gold.
Currently, Strategy holds 818,334 BTC (approximately $66.6 billion). In the first quarter, the company acquired 89,599 BTC, and at the beginning of the second quarter, another 56,235 BTC.
Source: BitcoinTreasuries.
The firm reported a net loss of $12.77 billion for the first three months of 2026, primarily due to "paper" losses from the revaluation of its Bitcoin reserves amid declining asset prices.
MSTR shares closed the last session at $186.90, up 1.7% for the day. Over the past month, the shares have risen by 46%, but remain down 26.7% over the past six months.
Source: Yahoo Finance.
It’s worth noting that in December 2025, Strategy created a $1.44 billion reserve for dividend payments, marking the first time the company confirmed its readiness to sell part of its Bitcoin holdings.