Michael Saylor: After three consecutive quarters of losses, Strategy will sell Bitcoin to pay dividends

Written by: Jai Hamid

Compiled by: AididiaoJP, Foresight News

Summary

• Saylor stated that Strategy may sell some Bitcoin if it helps the company.

• Strategy reported a net loss of $12.54 billion while holding 818,334 BTC.

• The company has about $1.5 billion in dividend and debt-related obligations.

Michael Saylor has now categorized Strategy's Bitcoin reserves alongside other company assets: useful, valuable, and sellable when the company needs cash.

This is the real story following Strategy's (MSTR) third consecutive earnings report failure, as Saylor personally indicated that the company could sell Bitcoin if it benefits the business.

This comment came during the May 5 earnings call for Strategy's first quarter. Saylor stated that he would not rule out the possibility of selling Bitcoin if it aligns with Strategy's interests. He also mentioned that the company might use part of its holdings to pay dividends and would inform the market in advance before doing so.

His exact words were:

"We might sell some Bitcoin to pay dividends, just to let the market adjust and convey that message. The purpose of a real estate development company is to buy land at a low price and sell it at a high price. We are like a Bitcoin development company."

Saylor tells investors: Strategy can use Bitcoin sales to address dividend bills

Strategy (MSTR) still holds one of the largest corporate Bitcoin positions in the world. The company disclosed that it holds 818,334 BTC, with an average cost of $75,537 per coin. This is a massive bet, but it also means that every significant drop in Bitcoin's price will severely impact the company's balance sheet.

The company reported a net loss of $12.54 billion in the fourth quarter, along with about $1.5 billion in dividend obligations. This figure includes annual dividends on preferred stock and interest on debt accounted for on the balance sheet.

Based on its dollar reserves, Strategy has about 18 months of payment coverage. This is why Saylor's comments are so important. He did not describe the potential sale of Bitcoin as a panic sell-off but rather as part of the company's heavy credit strategy.

He summarized the plan this way: "You buy Bitcoin with credit, let it appreciate, and then sell Bitcoin to pay dividends."

The market did not react calmly to this comment. Strategy (MSTR) fell more than 4% in after-hours trading. Bitcoin also dropped below $81,000, having been above that level just hours earlier. This is the part that quickly impacts crypto traders. A company built around holding BTC just told the market: selling is allowed.

Strategy's 2022 sales and 2026 accounting impact put pressure on Saylor's comments

The company has a history of one real Bitcoin sale. On December 22, 2022, then-MicroStrategy sold 704 BTC for about $11.8 million. This was the company's first sale of any Bitcoin.

That sale occurred after a difficult year for the market. During the earnings call on May 3, 2022, MicroStrategy's CFO Phong Le stated that if Bitcoin fell close to $21,000, the company might face margin calls. If that happened, the company would need to sell Bitcoin or post more collateral.

When Bitcoin later fell to around $20,800 in June 2022, MicroStrategy stated it had not received any margin call notifications. The company also indicated it had enough capital to handle further price fluctuations.

Pressure re-emerged at the end of November 2025. Forbes reported that Strategy's (MSTR) stock price had fallen 60% from the previous year. Its market capitalization dropped to $49 billion, while its Bitcoin holdings were valued at about $56 billion during the same period. After Strategy CEO Phong Le discussed the possibility of selling Bitcoin, market observers linked this statement to Bitcoin dropping below $86,000 in early December 2025.

Today, Phong stated:

"We consider selling Bitcoin in the future—whether to exchange for dollars or to sell Bitcoin to buy debt when it is favorable for Bitcoin's per-share value. We will sell Bitcoin when it benefits the company. We will not sit idly by and say 'we will never sell Bitcoin.' We want to be net accumulators of Bitcoin—adding to the total amount of Bitcoin, but more importantly, increasing the Bitcoin per share held, because we believe that is what is most valuable for MSTR in the long term."

Strategy recorded a $2.2 billion valuation reserve because the deferred tax assets related to unrealized losses on Bitcoin in the first quarter are expected to be unrealizable. The company purchased 89,599 BTC during the quarter, but its digital assets still decreased by $7.2 billion due to Bitcoin's 23% drop. The report also showed that STRC issuance brought in $2.1 billion in growth during the first quarter.