Strategy (NASDAQ: MSTR) may finally be testing the limit of its own HODL doctrine after Michael Saylor said the company would “probably sell” some Bitcoin to fund preferred dividends, a striking turn for a company whose public brand has long treated selling Bitcoin as almost unthinkable.
The tension is obvious because Saylor’s most viral framing was the opposite message. In a post back in February 2025, he said: “Sell a kidney if you must, but keep the Bitcoin.”
Strategy reported a Q1 2026 net loss of $12.54 billion, or $38.25 per diluted share, compared with a $4.22 billion loss, or $16.49 per diluted share, a year earlier. Net loss attributable to common stockholders was $12.77 billion, versus $4.23 billion in Q1 2025.
Most of that pain came from Bitcoin mark-to-market accounting. Strategy posted a Q1 operating loss of $14.47 billion, compared with $5.92 billion a year earlier, including a $14.46 billion unrealized loss on digital assets, up from $5.91 billion in Q1 2025.
Its operating business barely registers beside that volatility. Revenue rose 11.9% year over year to $124.3 million from $111.1 million, while gross profit increased to $83.4 million from $77.1 million.
The dividend problem
Strategy still holds a massive Bitcoin reserve. As of May 3, it held 818,334 BTC, up 22% year to date. The company reported a 9.4% BTC Yield, a 63,410 BTC Gain, and a $4.97 billion BTC Dollar Gain so far in 2026.
But the issue is not whether Strategy owns Bitcoin. It is whether the company can keep funding obligations without touching it. Strategy raised $11.68 billion year to date, including $5.58 billion through STRC, its preferred-stock vehicle. Those preferred instruments create recurring dividend pressure.
Strategy has disclosed $692.5 million in cumulative dividends declared and paid across preferred stock to date. Annual interest and dividend obligations have been reported at about $1.49 billion, up 47% from Q4 and equal to roughly 2.2% of the company’s $66.6 billion Bitcoin wealth.
That is the setup for Saylor’s remark. His “probably sell” comment was framed as a way to fund a dividend and prove the company can use Bitcoin if needed, not as an abandonment of the Bitcoin strategy.
Still, the optics are brutal. A company built on “keep the Bitcoin” is now publicly discussing selling some Bitcoin because the capital stack needs cash.
The conflict is not that Strategy is out of Bitcoin. It held more than 818,000 BTC as of early May. The conflict is between messaging and mechanics.
Earlier Q4 2025 coverage said Strategy had about $2.25 billion in cash, enough to cover interest and distributions for “more than two years.” By Q1, cash and cash equivalents stood at $2.21 billion, while newer coverage pegged reserves closer to 18 months of payouts, below the 24-month target.
So, is Strategy finally out of kidneys?
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
