Michael Saylor, renowned advocate of Bitcoin and CEO of Strategy, has publicly acknowledged for the first time that the company could consider selling a portion of its Bitcoin holdings in the future. This marks a notable departure from Saylor’s longstanding “never sell” approach and was shared following the company’s recent quarterly financial release.
Unexpected statement and market reactions
During a meeting with investors, Saylor explained that small amounts of Bitcoin could potentially be sold to finance dividend payments in the future. He emphasized that any such sale would be aimed at maintaining the company’s ability to fulfill its obligations sustainably, noting that their overarching goal is not just survival or debt management but ensuring a stable business model even under challenging market conditions.
Saylor’s comments sent ripples through the crypto market. Strategy’s history of aggressively accumulating Bitcoin had made many believe that the firm would never part with its assets. Now, with the sale of Bitcoin under discussion, analysts are debating how institutional Bitcoin holders may approach liquidity and dividend needs going forward.
“Eight to twelve weeks ago, the idea of selling Bitcoin or using it for dividends wasn’t even on the table, but now there are dozens of ventures interested in this space,” Saylor said, indicating how quickly new financial models are emerging.
Strategy’s BTC position and novel financial products
Strategy posted a net loss of $12.5 billion in the first quarter after Bitcoin’s value dropped by 24 percent. Despite this setback, the company continued to acquire Bitcoin and now holds a total of 818,334 BTC, with the current estimated value reaching $66.7 billion.
Most of Strategy’s recent Bitcoin purchases were funded through perpetual preferred shares—innovative financial instruments issued by the firm this year. The majority of the 145,834 Bitcoins acquired since January were financed via this structure, particularly through its flagship product Stretch (STRC).
Saylor anticipates that the Stretch product could become the primary credit instrument in markets over time. As assets under management increase, he expects both liquidity and adoption of the product to rise rapidly.
Meanwhile, decentralized finance platforms Pendle and Saturn have begun tokenizing STRC dividends, enabling these products to be traded on-chain. Saylor suggested that Bitcoin-backed financial products could eventually offer annual yields as high as 8 percent, outpacing the current average crypto interest rates.
Concerns from experts and investors
Analysts are raising questions about the long-term sustainability of perpetual preferred dividend shares. While these instruments have no set maturity, a prolonged decline in the price of Bitcoin could make it much harder to manage dividend payments effectively.
Since early April, Bitcoin’s price has bounced back by about 20 percent, helping to offset some of the losses incurred at the start of the year. Nevertheless, after the earnings disclosure, shares of Strategy slid 4.33 percent in after-hours trading, settling at $178.80.
The debate over Strategy’s evolving Bitcoin accumulation strategy signals a broader shift, hinting that other institutional investors may also seek greater flexibility in their BTC asset management strategies going forward.
