Strategy, the world’s largest publicly traded holder of bitcoin, is considering selling part of its BTC holdings to finance dividend payments. Michael Saylor, the company’s Executive Chairman, highlighted this option during a meeting in which Strategy disclosed its financial results for the first quarter of 2026.
Company’s bitcoin policy and current position
Strategy currently holds approximately 818,334 bitcoin, with an average acquisition cost of $75,537 per coin. As the company continues to search for sources of liquidity due to losses on its balance sheet and ongoing liabilities, alternatives are being evaluated. After reporting a net loss of $12.54 billion in the fourth quarter, management began exploring various options to meet its obligations for dividend and interest payments.
Strategy’s total dividend obligation stands at around $1.5 billion, a sum that includes both annual payments for preferred shares and interest on outstanding debt. Estimates suggest that the company’s cash reserves are sufficient to cover roughly 18 months of dividend payments under current conditions.
Potential BTC sale in focus
The company’s core strategy involves leveraging credit to buy bitcoin, holding the asset in anticipation of long-term price appreciation, and, if necessary, selling a portion of its bitcoin to fulfill dividend obligations. Michael Saylor explained that this approach is designed to prevent potential market panic and to send a clear signal to investors about the company’s position.
Michael Saylor commented, “We will likely sell some bitcoin to make dividend payments—this way, we’re alerting the market and providing a necessary message.”
Saylor further described the current model as “using credit to purchase bitcoin, waiting for it to appreciate, and then selling specific amounts to pay out dividends.”
Market reaction after financial results
Following the announcement, shares in Strategy dropped by more than 4% in after-hours trading. Meanwhile, the price of bitcoin also slipped below $81,000, according to CryptoAppsy data, which confirmed that BTC quickly fell beneath the key threshold after the news broke.
Strategy’s bitcoin-centric growth strategy continues to drive volatility in the market. The impact of such decisions on investor sentiment remains closely watched by analysts and stakeholders alike.
