Michael Saylor Defends Strategy’s Bitcoin Sales Plan Amid Dividend Concerns

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Michael Saylor defends Strategy’s <a href="https://pricpr.com/btc-usd/">Bitcoin</a> sales plan amid dividend concerns

Michael Saylor argues that Strategy should be able to sell small amounts of Bitcoin to grow its overall holdings, rather than committing to never selling any at all. He believes avoiding becoming a net seller is more important than a strict ‘never sell’ policy.

Summary

  • Strategy said limited Bitcoin sales could still support a larger BTC accumulation plan rather than reduce its treasury exposure.
  • Michael Saylor described STRC and MSTR as part of a Bitcoin-backed capital structure built around digital credit and equity products.

Saylor recently explained that Strategy is now using its Bitcoin holdings to fund its operations, specifically through preferred stock and other equity-based financing. He shared these details in comments on May 10th and during a presentation at the Consensus conference in Miami.

Saylor said any future Bitcoin sale would only happen within a larger accumulation cycle. 

He stated they would actually increase their Bitcoin holdings even if they sold some, responding to worries that Strategy might decrease its investment in BTC. He indicated they’d use any proceeds from a sale to buy 10 to 20 more Bitcoin.

Discussion about how the company manages its money has become more heated since Strategy revealed its preferred stock requires about $1.5 billion in dividend payments each year.

As a crypto investor, I was pretty concerned to see the recent report that this company took a $12.54 billion loss in the first quarter of 2026. It’s a big number, but they’re still holding a substantial amount of Bitcoin – 818,334 BTC to be exact. The good news is their average buy-in price is around $75,537, which gives me some confidence that they’ll recover if Bitcoin goes back up.

During a conversation with CoinDesk’s James Van Straten at the Consensus conference, Michael Saylor explained that worries about potential Bitcoin sales are unlikely to have a meaningful economic impact.

According to him, Strategy could continue to purchase around 20 Bitcoins for every one it sells, as long as dividends are paid using Bitcoin sales. Saylor also pointed out that any Bitcoin sold in this way would represent a small portion of the overall daily Bitcoin market, which he estimates to be between $20 and $50 billion.

Strategy expands Bitcoin financing model

In his presentation at Bitcoin 2026 and following posts on X, Saylor explained that Strategy operates as a three-part financial system centered on its Bitcoin holdings.

According to Saylor’s model, Bitcoin is essentially digital money, STRC acts as digital borrowing and lending, and MSTR stock represents the financial boost provided by the company’s Bitcoin holdings.

He explained his strategy as transforming Bitcoin into two other digital assets: digital credit (STRC) and digital equity (MSTR).

STRC, sometimes called “Stretch,” is a type of preferred stock offered by Strategy that’s designed to stay close to its original value of $100.

Saylor’s recent presentation and Strategy’s data show the company changes STRC’s monthly dividend based on market conditions. When STRC shares are trading at or above their original value, the company issues and sells new shares to raise capital.

The money earned from those sales is used to buy more Bitcoin, which is added to the company’s holdings.

In the same presentation, Saylor announced that STRC had quickly grown its assets under management to around $8.5 billion in just nine months. He explained that the product focuses on private credit, a market he values at $3.5 trillion.

KuCoin’s recap of the Bitcoin 2026 conference highlighted that STRC is designed to distribute profits from Bitcoin into regular monthly income streams.

The report explained that the investment was designed to offer an 11% return, based on Bitcoin’s expected yearly gains of 38%. It also used a 5:1 collateral ratio to protect against significant drops in Bitcoin’s price.

From my perspective, MicroStrategy (MSTR) remains the primary way for us to gain exposure to Bitcoin through public markets.

According to BitcoinTreasuries, the company now possesses over 800,000 Bitcoin. Additionally, Yahoo Finance reported that Strategy funded approximately 85% of its recent $2.5 billion Bitcoin purchase by issuing STRC.

Saylor also dismissed concerns raised by Peter Schiff, a proponent of gold, who suggested that Strategy’s funding could be strained if Bitcoin’s value dropped or its dividend payments increased.

Saylor explained that people who don’t see Bitcoin as a legitimate form of money are probably not going to be interested in financial services based on it.

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2026-05-12 11:24