Strategy said after its first-quarter results that it may consider selling a small amount of Bitcoin to help support dividend payments tied to its STRC preferred stock. The preferred instrument currently carries an annual yield of about 11.5%, and the STRC portfolio is valued at roughly $8.5 billion. Management said any such sales would be limited and temporary, not a change in the company’s long-running Bitcoin accumulation strategy.
Speaking to analysts, Michael Saylor said that if the company were ever to sell one Bitcoin, it would immediately look to acquire 10 or 20 more. He framed the idea as a capital allocation move rather than an attempt to realize net profit. In his description, the purpose would be to source funds that could support larger Bitcoin purchases later, using relatively few transactions.
Dividend obligations put focus on capital choices
CEO Phong Le said Bitcoin sales would only be considered if they were more advantageous to shareholders than issuing new stock, and he added that the decision would depend entirely on detailed financial analysis. Strategy also holds $2.25 billion in cash reserves as protection against liquidity needs. Its board is reviewing a proposal that would shift STRC dividend payments to a semi-monthly schedule.
That financing equation has unsettled part of the market. Some investors who favor a strict long-term accumulation model have reacted negatively to the idea of selling Bitcoin to fund distributions. Company leadership has pushed back, saying the central objective remains the same: increasing Bitcoin holdings on a per-share basis over time.
Criticism centers on the STRC structure
Economist Peter Schiff argued that there may be tension between maintaining high dividend payments and preserving Bitcoin reserves under the STRC capital structure. Saylor responded that Schiff does not view Bitcoin as a legitimate digital asset and therefore cannot fully appreciate its value. Strategy executives describe the company’s model as treating Bitcoin as digital capital and STRC as a digital credit product, while MSTR stock closely tracks the performance of the firm’s crypto asset base.
Analysts at JP Morgan have projected that Strategy’s future Bitcoin acquisitions could reach as much as $30 billion. The company’s average Bitcoin purchase price stands at $75,537 per BTC, with an unrealized profit margin of about 7.02%. The current market value of its Bitcoin reserves is estimated at $66.15 billion.