Strategy Considers Selling Bitcoin Holdings to Fund Dividend Payments

Strategy, the world's largest corporate Bitcoin holder, has announced plans to sell a portion of its 818,334 BTC holdings to fund its annual dividend payments. The company carries approximately $1.5 billion in dividend obligations across preferred stock and outstanding debt. This move marks a significant departure from Strategy's traditional 'buy and hold' approach.

The sale is expected to cover the company's 18-month USD reserves for its dividend obligations, which are due at current run-rates. The announcement has caused shares of MSTR to drop 4% in after-hours trading, with Bitcoin briefly dipping below $81,000 before recovering. Strategy's executive chairman Michael Saylor framed the move as a natural progression of the company's model, stating that 'you buy bitcoin with credit, you let it appreciate, and then you sell bitcoin to pay the dividend.'

The sale is expected to have a significant impact on the market, particularly in light of the recent increase in risk-on sentiment. The broader market has seen equities print records on fading Iran tensions and renewed AI optimism, with Asian equities reaching an all-time high.