Strategy Inc., formerly known as MicroStrategy and the world's largest corporate Bitcoin holder, announced on its Q1 2026 earnings call a significant shift in stance: the company is now open to selling portions of its Bitcoin holdings. The pivot comes in light of a staggering operating loss of $14.47 billion and a net loss of $12.54 billion, primarily driven by a $14.46 billion unrealized fair-value loss on the company's digital assets.
Bitcoin Holdings and Financial Engineering
As the first Bitcoin Treasury Company, Strategy Inc. holds an impressive 818,334 BTC as of early May, marking a 22% increase year-to-date in 2026. The company added 89,599 BTC in Q1 alone, followed by another 56,235 BTC so far in Q2. With this sizeable Bitcoin portfolio, the company signaled that selling higher-cost-basis BTC could shift around $7.6 billion in unrealized losses into an immediate tax benefit. This maneuver could result in approximately $2.2 billion in tax assets at a 29% rate.
Funding Accretive Actions
The proceeds from any such Bitcoin sales would be directed to high-BPS-accretive actions. These may include buying back undervalued company shares, retiring convertible debt, or supporting dividends—all while maintaining or growing Bitcoin per share. It's a strategic move that, if implemented correctly, could significantly benefit the company's financial health.
Proposed Changes to Dividends
In addition, Strategy Inc. proposed shifting STRC dividends from a monthly to semi-monthly distribution model. By doing so, it aims to enhance liquidity for its shareholders. This change, along with the potential sale of Bitcoin, indicates a company actively seeking ways to navigate its current financial challenges.
The company's next step is keenly awaited by the market as it seeks to leverage its Bitcoin assets to turn its financial tide.
