Michael Saylor’s Strategy signals potential bitcoin sale to fund dividends obligations
Michael Saylor proposes using bitcoin sales to support dividends, as Strategy reported a $12.54 billion Q1 loss.
Updated May 5, 2026, 11:48 p.m. Published May 5, 2026, 11:43 p.m. 1 min read
Strategy (MSTR), the world’s largest publicly traded corporate holder of bitcoin, floated the idea of selling bitcoin in order to cover its dividend obligations.
Executive Chairman Michael Saylor suggested, during its Q1 2026 earnings call, the company may sell a portion of its bitcoin holdings to fund dividend payments, stating: “We will probably sell some bitcoin to pay a dividend just to inoculate the market and send the message that we did it.”
The company disclosed a $12.54 billion net loss for Q4, while maintaining a total bitcoin position of 818,334 BTC at an average acquisition cost of $75,537 per coin.
Strategy has an outstanding dividend obligation of approximately $1.5 billion, including annualized preferred stock dividends and interest on outstanding debt. The firm has roughly 18 months of dividend coverage, based on its USD reserves relative to these obligations.
Saylor described the model as leveraging credit to acquire Bitcoin, allowing it to appreciate, and then selectively selling portions of the asset to meet dividend commitments.
“You buy bitcoin with credit, you let it appreciate, and then you sell bitcoin to pay the dividend.
Following the announcement, Strategy’s stock fell more than 4% in after-hours trading, while bitcoin declined below $81,000.
More For You
The Consensys CEO and founder said tokenization can be traced back to Ethereum, the blockchain he helped co-found.
What to know:
- Joseph Lubin, the founder and CEO of Consensys and an Ethereum co-founder, said at Consensus Miami 2026 that tokenization of virtually the entire global economy is now inevitable rather than experimental.
- Lubin argued that Ethereum’s early design enabling anyone to issue tokens without creating a new blockchain has positioned it…
