Michael Saylor first said he may sell Bitcoin, injecting a “shot in the arm” into the market

Ahead of Strategy’s Q1 earnings call held on May 6, Executive Chairman Michael Saylor said the company may sell some Bitcoin (BTC) to fund dividends, calling it a move to “inject the market with a shot of confidence” and to signal that the company is conducting normal operations. Strategy reported a net loss of $12.5 billion for the quarter.

Q1 Earnings Data: Bitcoin Holdings Size and Unrealized Losses

According to Strategy’s 2026 Q1 earnings report, as of the end of the reporting period the company held 818,334 BTC, valued at approximately $66.7 billion; of this, it added 145,834 BTC this year, with most financing completed through the issuance of perpetual preferred stock Stretch (stock code: STRC). The market value of Strategy’s Q1 Bitcoin holdings fell 23.8%, accounting for the bulk of the $12.5 billion net loss.

Saylor’s Remarks on Potential BTC Sales and Earlier Earnings Stance

(Source: Strategy)

In direct quotes from Strategy’s Q1 earnings call, Saylor said: “We might sell some Bitcoin to pay dividends, just to inject the market with a shot of confidence—and also to convey the information that we’ve already accomplished.” He added that market participants would realize that “the company is fine, Bitcoin is fine, the industry is fine, and the end of the world hasn’t come.”

In a February 2026 report by CNBC’s “Squawk Box,” Saylor, when interviewed, said: “I expect that we will buy Bitcoin every quarter forever.” At the time, he also said that even if Bitcoin fell to $8,000, Strategy would not need to sell its holdings in order to service its debt.

Stretch Perpetual Preferred Stock Structure and Bitcoin Credit Positioning

During Strategy’s Q1 earnings call, Saylor said his goal is to build Stretch into “the world’s largest credit instrument,” and noted that the decentralized finance protocols Pendle and Saturn have already started tokenizing 11% monthly dividend tokens of STRC to enhance market liquidity for Bitcoin-backed credit.

At the meeting, Saylor said the “digital yield accounts” built on Bitcoin as the underlying asset could offer investors returns of up to 8%, and he noted that around thirty related initiatives are currently in the development stage. He directly quoted in the meeting: “Eight weeks ago or twelve weeks ago, we weren’t even having these discussions, and now I’m seeing around more than thirty initiatives.”

As of May 6, Bitcoin has risen nearly 20% since April 1, to $81,250.

Frequently Asked Questions

What are the main reasons for Strategy’s net loss in Q1 2026?

According to Strategy’s 2026 Q1 earnings report, the main reason for the $12.5 billion net loss was the unrealized loss created by the 23.8% decline in the market value of its Q1 Bitcoin holdings. As of the reporting period, Strategy held 818,334 BTC, valued at approximately $66.7 billion.

Where does Saylor’s earlier stance on not selling Bitcoin come from?

According to a February 2026 report by CNBC’s “Squawk Box,” Saylor said in an interview that he “expects we will buy Bitcoin every quarter forever,” adding that even if Bitcoin fell to $8,000, Strategy would not need to sell its holdings to service its debt. The above remarks come from the interview broadcast publicly by CNBC.

What are the use case and dividend structure of Strategy’s Stretch (STRC) perpetual preferred stock?

According to Strategy’s Q1 earnings call, Stretch (STRC) is the dividend-paying perpetual preferred stock issued by Strategy, with a monthly dividend rate of 11%. Its main use is to raise funds for the company’s Bitcoin acquisition plan. Saylor said in the meeting that the goal is to build STRC into “the world’s largest credit instrument.”