Strategy Eyes Bitcoin Sales After Record $12.54B Q1 Loss
MSTR•Strategy posted a record $12.54 billion Q1 net loss as Bitcoin’s 24% price drop drove a $14.46 billion unrealized loss on its 818,334 BTC holdings at a $75,537 average cost. Michael Saylor flagged selling Bitcoin to cover $1.5 billion in STRC dividends, breaking the firm’s long-standing never-sell stance.
1. Record Q1 Loss and Bitcoin Holdings
Strategy reported a $12.54 billion net loss for Q1 driven by a 24% decline in Bitcoin’s price, resulting in a $14.46 billion unrealized accounting hit. The company holds 818,334 BTC at an average cost of $75,537 per coin, remaining in overall unrealized profit despite the downturn.
2. Strategy’s New Bitcoin Sales Approach
Executive chairman Michael Saylor indicated the firm may sell a portion of its Bitcoin treasury to fund approximately $1.5 billion in annual STRC preferred dividends. This marks the first deviation from Strategy’s prior ‘never sell’ policy and reflects a more tactical approach to balance-sheet management.
3. Market Reaction and Outlook
Shares fell over 4% in after-hours trading following the earnings call, reflecting investor uncertainty about potential Bitcoin sales. Management emphasized that any sales would be carefully timed to support dividends and optimize Bitcoin-per-share value, while maintaining the company’s long-term accumulation goal.
