Strategy Considers Selling Bitcoin to Fund Dividends Amidst Record Loss
Michael Saylor, Strategy's executive chairman, revealed that his firm may sell some of its Bitcoin holdings to fund dividends after reporting a $12.54 billion net loss in Q1 earnings.
The company currently holds 818,334 BTC at an average cost of $75,537 per coin, which would be worth around $62 billion at current prices. However, the value of these holdings has decreased by 23.8% due to a drop in Bitcoin's price during Q1.
Saylor stated that selling some Bitcoin would 'inoculate the market' and send a message that the company is taking action to address its financial obligations, which include $1.5 billion in annual dividend payments tied to its Stretch (STRC) preferred stock.
This marks a shift from Saylor's previous stance in February, when he said Strategy would 'buy Bitcoin every quarter forever.' Analyst Vetle Lunde had flagged structural risks tied to STRC earlier this year, warning that holders face capped upside through dividends but real downside during drawdowns.