In a surprising turn of events that has sent ripples through the crypto community, Michael Saylor, the staunch advocate for “never selling Bitcoin,” has publicly discussed the possibility of MicroStrategy (Strategy) divesting a portion of its significant Bitcoin holdings. This potential pivot stems from the company’s growing dividend obligations, particularly concerning its STRC “perpetual preferred stock,” which currently offers an attractive 11.5% annual dividend.
Key Takeaways
- Michael Saylor has acknowledged the potential need to sell Bitcoin to meet dividend payments, a stark contrast to his previous “sell kidneys, not Bitcoin” stance.
- Strategy aims to be a net accumulator of Bitcoin, focusing on increasing Bitcoin per share value over the long term.
- The company faces substantial annual dividend and interest payments, with current cash reserves only covering about 18 months of dividends.
- Selling Bitcoin could extend Strategy’s dividend runway to approximately 45 years, assuming stable BTC prices.
- MicroStrategy (MSTR) stock experienced a dip following the earnings call but showed resilience, while STRC has struggled to trade above its $100 liquidation threshold.
During Strategy’s Q1 2026 earnings call, Saylor indicated a pragmatic approach, stating, “We will probably sell some bitcoin to pay a dividend just to inoculate the market and send the message that we did it.” This statement marks a significant departure from his well-known doctrine. CEO Phong Le echoed this sentiment, emphasizing that Strategy actively manages its balance sheet to maximize the value of Bitcoin per share. “We want to be net aggregators of bitcoin – increasing our total bitcoin, but more importantly, increasing our bitcoin per share because we think that is what is going to be most accretive long term for MSTR,” Le explained.
The pressure to make these potential sales is driven by Strategy’s commitment to nearly $1.5 billion in annual dividend and interest payments across its preferred equity and bondholders. A substantial portion of this, about two-thirds, is owed to STRC holders. Without selling Bitcoin, the company’s current cash reserves can only cover dividend obligations for roughly 18 months. However, a strategic sale of Bitcoin could extend this financial runway to an impressive 45 years, provided the Bitcoin price remains stable.
The market reacted swiftly to the news, with MSTR shares tumbling 5.5% in after-hours trading before recovering most of those losses. Meanwhile, STRC has been trading below its crucial $100 liquidation threshold since April 14, a level that would allow Strategy to convert the instrument into cash.
JUST IN: Michael Saylor proposes selling Bitcoin to fund Strategy’s dividends. 48% chance Strategy sells any Bitcoin this year.
Source: : www.bankless.com