Michael Saylor's Strategy is preparing to sell a portion of its Bitcoin stash to fund dividend payments, a stark reversal from the CEO's longstanding 'never sell' mantra. The move comes after the company posted a $12.54 billion first-quarter loss as Bitcoin tumbled more than 23% — its worst opening quarter since 2018.
The $12.5 billion hole
Strategy booked a $14.46 billion unrealized markdown after Bitcoin slid from roughly $87,000 to $68,000 over the quarter. The company still holds 818,334 BTC at an average cost of $75,537 per coin, but the paper loss blew a hole in its balance sheet. CFO Phong Le said any sale would proceed only if it lifted Bitcoin per share, a metric the firm uses to measure shareholder value.
From 'sell a kidney' to selling Bitcoin
The about-face is jarring for anyone who followed Saylor's past rhetoric. Roughly a year ago he told followers to 'sell a kidney if you must, but keep the Bitcoin.' In early 2025 he tweeted 'Never sell your Bitcoin' and 'We can buy more Bitcoin than they can sell.' On the Q1 2026 earnings call, Saylor told analysts they would likely sell some Bitcoin to fund dividends, arguing the move would 'inoculate the market.'
The dividend math
Saylor insists the plan is sustainable. He says Bitcoin needs to appreciate just 2.3% annually for Strategy to cover its STRC dividends indefinitely through small disposals. But the company carries $1.5 billion in yearly dividend obligations and only about 18 months of cash coverage. If Bitcoin stagnates or falls further, the math gets tight fast.
Market reaction and critics
MSTR stock dropped after the earnings call. Economist Peter Schiff, a longtime critic, has repeatedly called the firm's Bitcoin-funded structure a Ponzi and questioned whether the dividend math holds without continuous BTC appreciation. Schiff has branded the equity itself a scam. The question now is whether Saylor can execute the pivot without tanking the price — and whether his dividend math holds up.
