Michael Saylor's Strategy signals potential bitcoin sale to fund dividends oblig

[Oshosondy]

Michael Saylor's Strategy signals potential bitcoin sale to fund dividends obligations

Pay attention to this news very well because some people will only pay attention mostly to Michael Saylor suggesting that they will sell little part of their bitcoin holding in order to cover its dividend obligations.

Also you can read that Strategy record a loss of $12.54 billion Q1. But read the average price they bought bitcoin which is $75537. Bitcoin has been increasing in Q2.

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.

Bitcoin still fulfilled its purpose for the company:

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.

According to the news, bitcoin fall a little and the news and Strategy stock also fell. But I do not think this is what people should worry about.

https://www.coindesk.com/business/2026/05/05/michael-saylor-s-strategy-signals-potential-bitcoin-sale-to-fund-dividends-obligations

What do you think?

[Wiwo]

Micro strategy funded their bitcoin portfolio through funds from other internal sources of the company,  and now they are selling some bitcoin to offset dividends.this is awesome and yes, Bitcoin indeed fulfilled its obligations and keeps fulfilling that since the micro strategy, I am not selling 100% of their total Bitcoin holdings.

$75,000 benchmark buying price and selling at the current price is quite a good profit for the company,  and bitcoin indeed made a mark at that moment,.

I saw the news on X yesterday, but my thought was that I hope the company will not need to buy back those Bitcoins at a much higher price than their current entry price of $75,000

[OgNasty]

The funny thing that people are doing with this situation is something Bitcoin miners have been doing wrong for years...  They measure Bitcoin as if it is going to stay the same price or difficulty will stay the same...  Measure how profitable they will be...  Then the price changes massively or the difficulty does and they're looking at a completely different picture.

Strategy doing this now seems like misleading more than ignorance.  They say Strategy can pay the dividends for 100 years or whatever.  What they don't consider is Bitcoin's price continuing to fall while Strategy takes on more debt obligations and shareholders sue over their BTC being promised to new preferred offerings.

Maybe Saylor pulls off a miracle by holding STRC and MSTR together and buys through the entire bear market.  However, the writing is already being written on the wall...

Saylor went from saying he would never sell to saying he was going to, "Inoculate the Market" which for those who may not understand what that means...  It means he's going to sell a ton of BTC and crash the price.  Why do that if he can pay the dividends for a hundred years without selling?  The fish smell is beginning to be too much to ignore.

[Akbarkoe]

STRC's need for dividend distribution is a responsibility they must fulfill. This sale is for that purpose, so don't be surprised if it continues to do the same.

From what they've said, they still have a target of 1 million Bitcoins and will definitely buy more.

However, what I'm wondering is whether this will trigger other institutions or retailers to sell their Bitcoins, or even create negative sentiment towards Bitcoin purchases at a time when Bitcoin is trying to break above $82,000 this time.

[tabas]

They have investors who are expecting dividends and there's no other way for them to pay them but to sell some from their holdings. Anyone who believes that they're not going to sell as what Michael has said before is probably thinking a second thought now. It might be his holdings that he'd never sell but it is not his with what the company holds. It's normal for companies to sell their assets if there's the upcoming dividends pay for its investors. It's their investors that they're using to buy those bitcoins so with the appreciation that they've got from it, everybody deserves to get a share from it.

[FanEagle]

I would hope that they will not need to, but if they had to, they could and that is the beauty of bitcoin. They are not making a loss, they are in profit, and if they can do this, then they can make some more money.

If they do end up selling, one thing that would be not ideal would be that they would be selling something they could have hold, and make more money and that would have been nicer for them, but right now at this moment it is looking like they are not going to make the peak price, but sell at just a bit higher, instead of like 125k where they could have sold less and pay off.

[JeffBrad12]

Understandable but it also means he's walking back on his statement about not selling bitcoin so it opens up every possibilities.

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.

So he's basically saying he'd sell his bitcoin whenever he sees fit, seeing it as just a way to grow their capital and that's it. Although i'm not surprised and knew that it's impossible for a company that seeks profit to hold their bitcoin indefinitely.

[thecodebear]

Some of you are acting like he's saying they are currently selling lots of bitcoin haha. That's not what this means. He is just opening up the possibility of selling bitcoin in the future to pay the dividends. And yes of course they are going to keep buying bitcoin, but they may in the future also from time to time sell a little bitcoin to make dividend payments.


Right now they are already loaded up on at least a couple billion dollars in cash to pay dividends, which can pay off the dividends for the next probably 3 or so years (edit: ah i see in a quote in the OP's post it mentions they have about 18 months worth, not 3 years). But he is saying that they also have the option of selling bitcoin in the future to pay dividends, as an alternative to selling stock to pay the dividends.


This was always going to be the problem with the dividend scheme. It never made financial sense. They don't make much profit and there is no way they can pay the dividends with their profits, so this was always going to obviously be an unnecessary and unwanted financial obligation for them that would have to either be paid with from stock sales (which could have otherwise gone to bitcoin purchases) or from selling bitcoin. I have never understood why they started doing these dividend shares when they could have just stuck to selling the regular stock to make bitcoin purchases. They really didn't think this through. I cringe every time I read that they sold more dividend shares to buy bitcoin, such a bad strategy for a company literally named Strategy lol.

They really need to stop selling dividend shares. And if anything they should sell a bunch of bitcoin (once bitcoin is back in a bull run at new ATHs) to buy back all the dividend shares they've already sold or I guess as many as are up for sale in the market, and reduce their permanent financial obligation there as much as possible.
But anyway, since they already have plenty of cash to pay dividends, if they do choose to sell a little bit of bitcoin to pay dividends that would at earliest be starting next year. But for sure long term they've gotta rectify the situation because it makes no financial sense to have dividends eat away at their bitcoin haul a tiny bit annually, or otherwise have it dilute the stock annually from selling stock to cover it.

[arwin100]

Understandable but it also means he's walking back on his statement about not selling bitcoin so it opens up every possibilities.

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.

So he's basically saying he'd sell his bitcoin whenever he sees fit, seeing it as just a way to grow their capital and that's it. Although i'm not surprised and knew that it's impossible for a company that seeks profit to hold their bitcoin indefinitely.

Well that's part of investment cycle and it just shows that no individual or institutions will going to hold their Bitcoin forever. They have obligations to pay attention that's why its not surprising if they came on that point thinking about selling some parts of their Bitcoin holdings.

That signals that there's a shift and people need to pay attention on their actions, then don' easily believe on statements made by those institution or else they will be easily manipulated.

[Don Pedro Dinero]

What do you think?

I’m finding it harder and harder to believe him, because this isn’t the first time he’s done something like this. Although, on the one hand, I hope his strategy succeeds, because that will benefit us Bitcoin holders, on the other hand, I’m not happy about him accumulating more and more Bitcoin. At the end of the day, it amounts to centralisation.

[Charles-Tim]

I’m finding it harder and harder to believe him, because this isn’t the first time he’s done something like this. Although, on the one hand, I hope his strategy succeeds, because that will benefit us Bitcoin holders, on the other hand, I’m not happy about him accumulating more and more Bitcoin. At the end of the day, it amounts to centralisation.

I do not know if he is going to change his mind, but for now he is not planing to continuing accumulating bitcoin. Strategy has bought 818334 BTC, but Michael Saylor plan is to buy 1 million BTC and the company is getting closer to the price. This bear market is still an opportunity for the company to buy more coins. In the next few years, they will make more profit from it.

[Perfectbaby]

There is something I am not getting right here; let say they said they bought bitcoin at an average of $75537 and currently the price of bitcoin is around ~81k. Hence, I would like to know where they incur those loses if the price of bitcoin has risen back above their initial entry point where did they incurred those loses?
If they said sold some of their possession around $65k, then this could be true that they are into loses and therefore things should be shared accordingly in way it wouldn't mislead the audience and the readers.