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.

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.

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.