Strategy (MSTR), the world’s largest corporate Bitcoin (BTC) holder, has moved away from its longstanding never-sell policy, opening the door to potential BTC sales for the first time since it began its accumulation programme in 2020.
Speaking on the company’s Q1 2026 earnings call on 5 May, Executive Chairman Michael Saylor said Strategy would probably sell Bitcoin to fund a dividend, framing the step as a deliberate market signal. CEO Phong Le clarified that the company would sell when advantageous and would no longer maintain an absolute never-sell position.
"We’ll probably sell some Bitcoin to fund a dividend just to inoculate the market, just to send the message that we did it," Saylor said.
Q1 results show wider loss
Strategy reported a net loss of $12.54bn, or $38.25 per diluted share – a measure that accounts for all potential shares that could be issued – for the quarter. This compared with a $4.22bn net loss, or $16.49 per share, in Q1 2025 and missed analyst estimates that had predicted a loss of around $18.98 per share.
The wider loss stemmed mainly from a $14.46bn unrealized decline – a paper loss based on current market prices rather than actual sales – on its Bitcoin holdings, as the token fell roughly 7% during the period. Revenue rose 12% year-over-year to $124.3mn, but still fell short of expectations.
Strategy holds 818,334 BTC at a cost basis – the total amount originally paid to acquire the coins – of about $62bn and a market value near $64bn, equal to roughly 3.9% of total Bitcoin supply. The company has raised $11.7bn year-to-date to fund purchases, including $5.6bn via its STRC instrument.
STRC offers new capital tool
STRC, full name Variable Rate Series A Perpetual Stretch Preferred Stock, is a type of equity that pays regular dividends to investors and ranks above common stock in priority for payouts. It pays monthly cash dividends, currently at about 11.5%, and is designed to trade near a $100 par value. Proceeds primarily support Bitcoin acquisitions without heavy dilution of common shares. The total market value of that instrument has increased to $8.5bn, positioning it as one of the largest preferred stock offerings globally by that metric.
Saylor likened the approach to a real estate developer that buys low, sells high when needed, and services obligations. He argued that locking the company into a never-sell stance on its $60bn-plus Bitcoin assets would impair value, given Bitcoin’s daily liquidity of $20bn or more.
Implications for corporate treasuries
The shift carries significance for the growing cohort of companies that have copied Strategy’s Bitcoin treasury model – the practice of holding Bitcoin as a primary corporate reserve asset. Its prior unconditional holding stance had served as a key confidence signal for institutional adopters and has been copycatted with both the original cryptocurrency and certain altcoins. Saylor positioned any sale as reassurance to the broader market rather than a distress indicator.
Strategy’s internal BTC yield metric, which tracks the percentage change in Bitcoin per share over a given period, reached 9.4% year-to-date, compared with almost 23% in 2025.
Outlook hinges on market conditions
Investors will now likely watch how Strategy balances its Bitcoin Treasury Company identity with tactical flexibility. A modest sale to fund dividends could test market absorption while unlocking tax benefits or liquidity. Risks include potential signalling effects on other corporate holders if executed poorly, or criticism from purists who view the never-sell policy as sacrosanct.
Despite the earnings miss, Strategy’s stock rose on the day, suggesting investors focused more on strategic optionality and Bitcoin’s long-term outlook than the headline loss.
