MicroStrategy Eyes Selling Bitcoin After $12.5B Q1 Loss to Fund $1.5B Dividends
Strategy posted Q1 revenue of $124.3 million and a $12.54 billion net loss driven by Bitcoin impairment. Michael Saylor signaled a shift to actively manage its 818,334-coin treasury—potentially selling Bitcoin to fund more than $1.5 billion in annual preferred dividends and limit share dilution.
1. Q1 Financial Results
MicroStrategy reported Q1 revenue of $124.3 million, missing consensus estimates, and recorded a net loss of $12.54 billion, primarily due to a $14.46 billion unrealized impairment on its Bitcoin holdings. The 24% drop in Bitcoin valuation during the quarter drove the majority of the deficit.
2. Bitcoin Policy Shift
Executive chairman Michael Saylor signaled a departure from the firm’s longstanding ‘never sell’ Bitcoin strategy, indicating that MicroStrategy will adopt an actively managed approach. The company holds 818,334 bitcoins at an average cost basis near $75,500 and may rotate assets to maximize value per share.
3. Dividend Obligations and Dilution
MicroStrategy faces over $1.5 billion in annual dividend commitments on its STRC preferred shares, prompting consideration of Bitcoin sales to generate liquidity. Recent stock and debt issuances have diluted founder control and increased pressure to balance treasury management with shareholder interests.