Strategy Considers Bitcoin Sale to Cover Dividend Payments

Strategy, a company with significant bitcoin holdings, has announced that it may sell part of its reserves to cover dividend payments on perpetual preferred shares. The decision comes as the company reports a substantial net loss in the first quarter.

The company's CEO, Michael Saylor, emphasized during the earnings call that Strategy would only sell coins if it benefits the business. This shift in strategy marks a departure from previous statements by Saylor, who repeatedly emphasized the long-term accumulation of bitcoin.

Strategy has primarily financed its bitcoin purchases through the issuance of shares and debt instruments. However, with the current treasury volume, the asset needs to appreciate by about 2.3% annually for Strategy to cover STRC dividend obligations from its reserves without selling common shares.