Strategy Shares Fall Over 4% After CEO Proposes Bitcoin Sales for Dividends
STRC•Strategy posted a Q1 net loss of $12.54 billion on $124.3 million revenue and held 818,334 BTC at an average cost of $75,537. Shares tumbled over 4% in after-hours trading after executive chairman Michael Saylor proposed selling Bitcoin to fund dividend payments.
1. Q1 Financial Results
Strategy reported a net loss of $12.54 billion in Q1 on $124.3 million revenue, driven by $14.46 billion in unrealized digital asset losses. The company ended the quarter with $2.21 billion in cash and increased its Bitcoin holdings 22% year-to-date to 818,334 BTC at an average cost of $75,537 per coin.
2. CEO Proposes Bitcoin Sales
Executive chairman Michael Saylor stated that the company may sell some Bitcoin holdings to fund dividend payments, describing the move as a way to support shareholder returns while using credit to acquire additional Bitcoin over time. CEO Phong Le added that sales would be evaluated when advantageous or when they enhance Bitcoin per share value.
3. Market Reaction And Outlook
Shares fell over 4% in after-hours trading following the proposed Bitcoin sale plan, reflecting investor concern over potential asset divestment. Traders now assign a 42% probability of a Bitcoin sale by year-end, and attention is turning to the impact on the company’s debt management and long-term Bitcoin accumulation strategy.
