Michael Saylor Says Strategy Is Fine, But They'll 'Sell Some Bitcoin' Just To 'Inoculate' The Market

Strategy

Strategy

MSTR

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Michael Saylor, Executive Chairman of Strategy Inc. (NASDAQ:MSTR), hinted on Tuesday at a potential sale of some of the company’s Bitcoin (CRYPTO: BTC) holdings to fund dividend payments on its preferred stock.

Saylor Says Company Wants To Be Flexible

Saylor, during Strategy’s first-quarter earnings call, said the firm is willing to be more flexible in managing its capital stack.

“We'll probably sell some Bitcoin to fund a dividend just to inoculate the market, just to send the message that we did it,” Saylor said.

He stressed that the potential sale would not be a reflection of any issues, insisting that all is “fine” with the company and Bitcoin.

“The more optionality we create and the more tools we have at our disposal, I think, the better it is for the equity investors,” the Bitcoin bull added.

Read Also: How Even A 1% Bitcoin Allocation Can Improve Returns By Up To 30%: Fidelity

Plan To Save Tax?

Notably, Strategy CEO Phong Le stated that the company’s “objective” is to sell Bitcoin purchased at higher prices than current levels to realize capital losses, potentially unlocking around $2.2 billion in tax savings.

Note that companies can often use capital losses to offset future taxes or carry them forward.

Strategy Reports Q1 Losses

Strategy reported quarterly losses of $38.25 per share, while revenue beat the analyst consensus estimate at $124.3 million.

As of today, Strategy holds 818,334 BTC, representing roughly 3.9% of Bitcoin's total supply. Its position remains profitable—for now—but risks turning red if BTC dips below $75,000.

Strategy paused its weekly Bitcoin acquisition ahead of the release of its first-quarter financials, with Saylor saying, "No buys this week. Back to work next week."

Price Action: At the time of writing, BTC was exchanging hands at $81,604.24, up 0.82% in the last 24 hours, according to data from Benzinga Pro.

Strategy shares fell 4.33% in after-hours trading after closing 1.69% higher at $186.90 during Tuesday’s regular trading session.

Benzinga's Edge Stock Rankings indicate long-term weakness, while short- and medium-term trends remain positive.

Read Also: Peter Schiff Calls Strategy's Preferred Stock 'Most Obvious' Ponzi Scheme Because The Michael Saylor-Led Company Is 'Open' About It

Photo courtesy: PJ McDonnell / Shutterstock.com

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