MicroStrategy Eyes Bitcoin Sales to Cover $1.5B Annual Dividends After $12.5B Loss
MicroStrategy posted a record $12.54 billion first-quarter net loss driven by a 24% Bitcoin price drop, while holding 818,000 BTC at an average cost of $75,500. Executive chairman Michael Saylor signaled the company may sell a portion of its Bitcoin to fund $1.5 billion in annual preferred stock dividends.
1. Q1 Financial Results
MicroStrategy reported a first-quarter net loss of $12.54 billion on revenues of $124.3 million, driven by a 24% decline in Bitcoin’s price that generated a $14.46 billion unrealized accounting loss.
2. Policy Shift on Bitcoin Holdings
Executive chairman Michael Saylor signaled a departure from the firm’s long-held “never sell” stance by proposing to liquidate a portion of its Bitcoin holdings to fund approximately $1.5 billion in annual preferred stock dividends, framing it as a move to demonstrate active balance-sheet management rather than a retreat from its Bitcoin strategy.
3. Treasury Position and Outlook
As of quarter-end, MicroStrategy holds over 818,000 BTC at an average cost basis of $75,500 per coin and maintains $2.21 billion in cash and equivalents. The company has raised $11.68 billion through equity and preferred issuances year-to-date and intends to remain a net Bitcoin accumulator, reinvesting proceeds when accretive to Bitcoin per share.