Strategy said it may sell part of its Bitcoin holdings to meet dividend obligations and address certain tax liabilities. The discussion centers on the company’s Series A Perpetual Stretch Preferred Stock, or STRC, which carries an annual dividend of 11.5%.
CEO Phong Le said some proceeds from any Bitcoin sale could also be used to defer or balance tax obligations. He added that the company’s main standard is whether a sale strengthens Strategy’s financial position, not simply whether it can fund a near-term payment.
Dividend commitments put Bitcoin sales in focus
The issue drew broader attention after co-founder Michael Saylor recently said periodic Bitcoin sales could be an option. On a recent earnings call, Saylor said the company “may sell enough Bitcoin to cover our dividend payments” so the market can understand the process in advance and see that it is being handled transparently.
Saylor also said that if Bitcoin appreciates by more than 2.3% per year, Strategy could cover its dividends over the long run using strategic Bitcoin sales alone. He added that the company has reached a point where it could stop selling MSTR shares and pay dividends only through Bitcoin sales.
Management says per-share Bitcoin exposure is the key metric
According to the company, the objective is to keep paying dividends without reducing the amount of Bitcoin held per share. That means a sale would take place only if it supports shareholders’ long-term interests and improves the BTC-to-share ratio.
That framing shows Strategy is not presenting Bitcoin sales as a stand-alone liquidity move. Management is tying any decision back to balance sheet strength, with the company signaling that the effect on its capital structure matters more than a single transaction.
818,334 BTC reserve and questions about market pressure
Latest records show Strategy holds 818,334 BTC, keeping its lead as the largest public-company holder of Bitcoin. On the day of the announcement, the position was valued at more than $66 billion, a figure also supported by data from BitcoinTreasuries.
Executives said that even if annual dividend payouts exceed $1 billion, the sales would not create major pressure on the broader Bitcoin market. Phong Le pointed to Bitcoin’s average daily trading volume of roughly $60 billion, arguing that market liquidity is large enough to absorb that scale of selling.
Le said the company does not expect its BTC sales to have a significant effect on the market given current trading volumes. The report also noted that industry experts generally agree large corporate sales can add short-term downward pressure, but most of the impact would likely be absorbed by existing liquidity.