Strategy Considers Selling Bitcoin After Heavy Q1 Loss
Strategy said on Tuesday that it may consider selling part of its Bitcoin holdings to help fund dividend payments after reporting a significantly larger-than-expected first-quarter loss.
The company posted a quarterly loss of $38.25 per share, far worse than analyst expectations of $18.98 per share, as unrealized losses tied to its massive Bitcoin position weighed heavily on financial results.
Bitcoin Holdings Continue to Pressure Financial Results
Strategy has financed most of its large-scale Bitcoin purchases through debt offerings and new stock issuances. However, the company remains responsible for interest payments and dividend obligations, particularly linked to its preferred stock products.
During the post-earnings conference call, Chairman Michael Saylor said the company could sell a portion of its Bitcoin holdings to support dividend payments and reassure investors.
According to Saylor, the company plans to become more tactical with its capital allocation strategy moving forward, although he did not reveal how much Bitcoin could potentially be sold.
He added that the amount Strategy can responsibly sell depends largely on Bitcoin’s market price and broader investor reaction in equity markets.
Potential Tax Benefits From Bitcoin Sales
Strategy CEO Phong Le noted that selling Bitcoin could also provide tax advantages that may strengthen the company’s balance sheet.
Despite the comments surrounding a possible sale, Bitcoin showed little market reaction and continued trading higher. Bitcoin rose 0.8% and reached a three-month high of $81,130.4.
Saylor’s remarks represent a major shift from the company’s previous “never sell” stance on Bitcoin, as Strategy faces mounting unrealized losses tied to its crypto holdings.
Revenue Growth Fails to Offset Massive Operating Loss
Strategy reported first-quarter revenue of $124.3 million, slightly below analyst expectations of $125.07 million. However, revenue still increased 11.9% compared to $111.1 million during the same quarter last year.
The company’s operating loss widened sharply to $14.47 billion, compared to $5.92 billion in the first quarter of 2025. The majority of the loss came from a $14.46 billion unrealized decline in the value of its digital asset portfolio.
Strategy Expands Bitcoin Holdings Despite Losses
Despite the accounting losses, Strategy continued increasing its Bitcoin exposure.
As of May 3, the company held 818,334 bitcoins, representing 22% growth year-to-date. The firm also reported a 9.4% BTC Yield during the period.
The company stated that its Bitcoin holdings were valued at approximately $64.14 billion as of May 3, with an average purchase price of around $75,537 per bitcoin.
Stock Falls After Earnings Report
Shares of Strategy declined 3.1% in aftermarket trading following the earnings release, reflecting investor concerns over the deeper-than-expected losses.
Meanwhile, the company’s STRC preferred stock raised $5.58 billion year-to-date, marking growth of 189%. Strategy also said it has paid $692.5 million in cumulative dividends across 23 consecutive preferred equity distributions.
Overall, the company raised $11.68 billion in total capital during the year through multiple securities offerings.
As of March 31, Strategy held $2.21 billion in cash and cash equivalents, slightly down from $2.30 billion at the end of 2025.
