Disclosure: The author of this article owns shares of Strategy (MSTR).
Strategy (MSTR), the world’s largest publicly traded corporate holder of Bitcoin, has floated the idea of selling Bitcoin to meet its dividend obligations.
Executive Chairman Michael Saylor said on the first quarter 2026 earnings call that the company may sell some of its Bitcoin assets to pay dividends, saying: “We may sell some Bitcoin to pay dividends just to inject vaccine into the market and send the message that we did this.”
The company disclosed a net loss of US$12.54 billion in the fourth quarter, while its total Bitcoin position remained at 818,334 Bitcoins, with an average acquisition cost of US$75,537 per Bitcoin.
Strategy’s outstanding dividend obligations are approximately $1.5 billion, including annualized preferred stock dividends and interest on outstanding debt. The company has approximately 18 months of dividend coverage based on U.S. dollar reserves tied to these obligations.
Thaler described the model as using credit to acquire Bitcoin, allowing it to appreciate in value, and then selectively selling off portions of the assets to meet dividend commitments.
“You buy Bitcoin with credit, let it appreciate, and then you sell Bitcoin to pay dividends.
Strategy shares fell more than 4% in after-hours trading after the news was announced, while Bitcoin fell below $81,000.