Core Points
Strategy is recognized as the world's largest publicly traded Bitcoin custodian, recently announcing a net loss of $12.254 billion for the first quarter of 2026. This massive deficit is primarily due to paper losses in its cryptocurrency portfolio, as Bitcoin plummeted by 23.8% over the past three months.
During the first quarter earnings call, Executive Chairman Michael Saylor revealed surprising news. He stated that Strategy might sell some of its Bitcoin reserves to meet dividend requirements.
“We may sell some Bitcoin to pay dividends, primarily to protect the market and convey the signal that we are doing this,” Saylor said.
This marks the first time Saylor has considered selling Bitcoin holdings, indicating a significant shift from his previously held “permanent hold” philosophy. Just a few months ago, in February 2026, Saylor told CNBC that Strategy planned to “buy Bitcoin every quarter forever.” In the same interview, he confidently stated that the company could withstand Bitcoin prices dropping to $8,000 without needing to force liquidation.
The company faces approximately $1.5 billion in annual dividend payments and debt service requirements. According to Saylor, Strategy has about 18 months of financial runway with its existing dollar reserves.
He described this framework as a credit-based business model: acquiring Bitcoin through financing, allowing it to appreciate over time, and then strategically selling portions to meet financial obligations.
Permanent Preferred Securities and Stretch Innovation
Saylor elaborated on the vision for Stretch, hoping it will become “the largest credit instrument in the world.” He emphasized that expanding managed assets would enhance trading liquidity and create strong network effects.
Several Bitcoin-based decentralized finance platforms, including Pendle and Saturn, have begun tokenizing Stretch's 11% monthly dividend stream. This initiative enables on-chain trading of these cash flows, significantly boosting market liquidity.
Upcoming Bitcoin-Collateralized Yield Products
Saylor predicts that digital banking platforms will soon launch Bitcoin-backed yield accounts. He stated that the yields on these products could approach 8%, claiming they surpass typical stablecoin returns.
“Check back in 12 weeks; I think we will have some exciting news,” Saylor promised.
He noted that over the past few weeks, more than thirty related projects have emerged, whereas there was virtually no activity eight to twelve weeks ago.
After the quarterly performance disclosure, Strategy's stock fell 4.33% in after-hours trading to $178.80.
Meanwhile, Bitcoin's price also dipped below the $81,000 mark.