MicroStrategy May Sell Bitcoin to Fund Preferred Dividends
Michael Saylor told investors MicroStrategy will likely sell some of its 818,334 BTC to cover STRC preferred dividends after a $12.54 billion Q1 loss.
On MicroStrategy’s Q1 2026 earnings call, CEO Michael Saylor told analysts the company will likely sell part of its Bitcoin holdings to fund STRC preferred dividends after reporting a $12.54 billion quarterly loss. On the call he said, “We’ll probably sell some Bitcoin to fund a dividend just to inoculate the market, just to send the message that we did it.”
The company recorded a $14.46 billion unrealized markdown on its Bitcoin position after the cryptocurrency fell from roughly $87,000 to $68,000 during the quarter. MicroStrategy holds 818,334 BTC at an average purchase price of $75,537 per coin.
Chief Financial Officer Phong Le said any sale would proceed only if it increased Bitcoin per share. Saylor estimated Bitcoin would need about 2.3% annual appreciation for the company to cover its STRC dividends indefinitely through small, periodic disposals. MicroStrategy faces about $1.5 billion in annual dividend obligations and reported roughly 18 months of cash coverage. The company’s stock fell after the earnings call.
Earlier this year Saylor posted tweets including “Never sell your Bitcoin” and listed the “Rules of Bitcoin” as buying and refusing to sell. Those posts contrasted with his comments on the earnings call.
Economist Peter Schiff criticized the plan, calling the dividend structure a Ponzi and questioning whether the payments can continue without sustained Bitcoin gains.
MicroStrategy has centered its corporate strategy on accumulating Bitcoin through repeated purchases. The company did not provide a timetable or specify amounts for any potential sales, saying decisions would depend on market conditions and the effect on Bitcoin per share. The next quarterly report is likely to offer further detail on how the company will balance dividend payments, cash reserves and its Bitcoin holdings.
