Strategy Considers Selling Bitcoin After $12.5B Q1 Loss to Fund Dividends
MSTR•Strategy posted a record net loss of $12.54 billion in Q1 driven by a 24% decline in Bitcoin’s price, while generating $124.3 million in revenue. Executive chairman Michael Saylor said Strategy will likely sell some Bitcoin to fund roughly $1.5 billion in STRC preferred dividends.
1. Q1 Financial Results
Strategy posted a record net loss of $12.54 billion in Q1 driven by a 24% decline in Bitcoin’s price, while generating $124.3 million in revenue. The firm holds 818,334 BTC at an average cost of $75,537 per coin, resulting in a $14.46 billion unrealized fair market value loss.
2. Shift in Bitcoin Strategy
Executive chairman Michael Saylor signaled a departure from the firm’s longstanding “never sell” policy by suggesting the company could sell some Bitcoin holdings if it proves advantageous. This marks the first public acknowledgment of tactical flexibility since Saylor’s earlier commitment to buy and hold indefinitely through market downturns.
3. Dividend Funding Plan
Strategy aims to fund roughly $1.5 billion in annual STRC preferred stock dividends through potential Bitcoin sales, framing the move as a way to actively manage its balance sheet. CEO Phong Le noted that tactical sales would be considered when they enhance Bitcoin per share value and manage debt obligations.
4. Balance Sheet and Outlook
The company closed the quarter with $2.21 billion in cash and cash equivalents and continues to seek capital via STRC preferred shares, which have raised $5.58 billion year to date. Shares fell over 4% in after-hours trading, reflecting investor concern over deeper losses and a shift toward active asset management.
