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Michael Saylor’s Strategy signals potential bitcoin sale to fund dividends obligations
Michael Saylor proposes using bitcoin sales to support dividends, as Strategy reported a $12.54 billion Q1 loss.
May 5, 2026, 11:43 p.m. 1 min read
What to know:
- Strategy reported a $12.54 billion Q1 net loss while holding 818,334 bitcoin at an average cost of $75,537; the firm has about 18 months of dividend coverage against $1.5 billion in annual obligations.
- Executive Chairman Michael Saylor suggested selling bitcoin to pay dividends, contributing to a 3% after-hours drop in the stock and bitcoin slipping below $81,000.
Strategy has an outstanding dividend obligation of approximately $1.5 billion, including annualized preferred stock dividends and interest on outstanding debt. The firm has roughly 18 months of dividend coverage, based on its USD reserves relative to these obligations.
Saylor described the model as leveraging credit to acquire Bitcoin, allowing it to appreciate, and then selectively selling portions of the asset to meet dividend commitments.
“You buy bitcoin with credit, you let it appreciate, and then you sell bitcoin to pay the dividend.
Following the announcement, Strategy’s stock fell more than 4% in after-hours trading, while bitcoin declined below $81,000.
