Strategy Considers Bitcoin Sales After $12.5B Q1 Loss to Fund $1.5B Dividends
MSTR•Strategy recorded a $12.54 billion Q1 net loss driven by a 24% Bitcoin decline while holding 818,334 BTC at an average cost of $75,537 per coin. Executive chairman Michael Saylor signaled a move to actively manage the treasury, including potential Bitcoin sales to cover over $1.5 billion in annual preferred dividends.
1. Q1 Financial Results
Strategy’s first quarter saw a record $12.54 billion net loss, driven by a 24% drop in Bitcoin’s market price. Total revenues reached $124 million, and unrealized digital asset losses amounted to $14.46 billion. The firm holds 818,334 BTC with an average acquisition cost of $75,537 per coin, remaining in overall unrealized profit despite the drawdown.
2. Shift in Bitcoin Holding Policy
For the first time, executive chairman Michael Saylor indicated Strategy may sell a portion of its Bitcoin holdings rather than adhering to a strict buy-and-hold mandate. He described potential sales as a tactical move to “inoculate” the market and demonstrate active balance sheet management. This marks a departure from the longstanding ‘never sell’ stance, aligning asset management with liquidity needs.
3. Dividend Funding and Preferred Shares
Strategy faces over $1.5 billion in annual dividend obligations on its variable-rate Series A perpetual preferred shares (STRC). Proceeds from any Bitcoin sales would be earmarked for these payments while preserving the company’s broader accumulation strategy. Management stresses that Bitcoin remains the core treasury asset, with sales targeted only when advantageous to share value.
