Strategy (MSTR), the world’s largest publicly traded owner of bitcoin, shot down the idea of selling bitcoin to cover its dividend obligations.
Director Michael Saylor suggested during its Q1 2026 earnings call that the company could sell some of its bitcoin holdings to fund dividend payments, saying, “We will probably sell some bitcoin to pay dividends just to inoculate the market and send the message that we did.”
The company revealed a net loss of $12.54 billion for Q4, while maintaining a total bitcoin position of 818,334 BTC at an average acquisition price of $75,537 per share. coin.
Strategy has an outstanding dividend obligation of approximately $1.5 billion, including annual preferred stock dividends and interest on outstanding debt. The firm has approximately 18 months of dividend coverage based on its USD reserves against these liabilities.
Saylor described the model as leveraging credit to acquire Bitcoin so it can appreciate and then selectively sell portions of the asset to meet dividend obligations.
“You buy bitcoin with credit, you let it appreciate, and then you sell bitcoin to pay the dividend.
After the announcement, Strategy’s stock fell more than 4% in after-hours trading, while bitcoin fell below $81,000.
