Disclosure: The writer of this story owns shares in Strategy (MSTR).
Strategy (MSTR), the world’s largest publicly traded company holder of bitcoin, floated the thought of promoting bitcoin to be able to cowl its dividend obligations.
Government Chairman Michael Saylor instructed, throughout its Q1 2026 earnings name, the corporate could promote a portion of its bitcoin holdings to fund dividend funds, stating: “We will probably sell some bitcoin to pay a dividend just to inoculate the market and send the message that we did it.”
The corporate disclosed a $12.54 billion internet loss for This fall, whereas sustaining a complete bitcoin place of 818,334 BTC at a median acquisition price of $75,537 per coin.
Strategy has an excellent dividend obligation of roughly $1.5 billion, together with annualized most popular inventory dividends and curiosity on excellent debt. The agency has roughly 18 months of dividend protection, based mostly on its USD reserves relative to those obligations.
Saylor described the mannequin as leveraging credit score to accumulate Bitcoin, permitting it to understand, after which selectively promoting parts of the asset to fulfill dividend commitments.
“You purchase bitcoin with credit score, you let it recognize, and then you definately promote bitcoin to pay the dividend.
Following the announcement, Strategy’s inventory fell greater than 4% in after-hours buying and selling, whereas bitcoin declined under $81,000.
