Michael Saylor, executive chairman of Strategy, told analysts on the company's first-quarter earnings call that the firm might sell a portion of its Bitcoin holdings to cover dividend payments. The comment signals a notable departure from his long-standing mantra of accumulating Bitcoin indefinitely.
“We’ll probably sell some Bitcoin to fund a dividend, just to inoculate the market,” Saylor said. He argued the move would demonstrate that “the company’s fine, the Bitcoin’s fine, the industry’s fine, the world didn’t come to an end.”
Q1 Net Loss Hits $12.54B; Bitcoin Holdings Up 22%
Strategy reported a first-quarter net loss of $12.54 billion, or $38.25 per share, driven by the lower valuation of its Bitcoin stash. As of May 3, 2026, the firm held 818,334 BTC, a 22% increase since the start of the year. Strategy also posted a 9.4% BTC Yield and said it raised $11.68 billion year to date.
Saylor did not frame the potential sale as forced. Instead, he said selling a small amount to fund dividends would reduce market uncertainty about Strategy's ability to meet its payment obligations. Investors would then see an orderly sale without panic. The statement contrasts with Saylor’s previous rhetoric — in February 2026, he said Strategy intended to buy Bitcoin “every quarter forever” and could handle a severe drawdown without selling any.
STRC Preferred Dividend Pressure Mounts
Strategy has relied on preferred stock instruments like STRC, which pays monthly dividends, to finance its Bitcoin purchases. According to earlier coverage by crypto.news, Strategy paused Bitcoin buying ahead of its Q1 report as attention shifted to STRC’s dividend cost. The same report noted that Strategy last added 3,273 BTC for about $255 million, bringing its holdings to 818,334 BTC.
Market analysts question whether Strategy can sustain its dividend payments if Bitcoin’s price doesn’t rally fast enough. The company’s combined annual dividend and interest obligations are estimated at roughly $1.5 billion.
Bitcoin Gain Remains Core Metric
Saylor continues to highlight Bitcoin-based performance measures. In a recent update, he said Strategy generated 63,410 BTC in “Bitcoin Gain” since the start of 2026, worth about $5.1 billion at current prices. That figure represents roughly 3.9% of Bitcoin’s capped supply of 21 million. Saylor has described Bitcoin Gain as “close to net income under a Bitcoin-based reporting model.”