Strategy plans bitcoin sales to fund $1.5B dividends after $12.54B Q1 loss, causing stock and bitcoin dip.

Strategy, the largest public corporate bitcoin holder, reported a $12.54 billion net loss in Q1 2026 and holds 818,334 bitcoins at an average cost of $75,537 each. Executive Chairman Michael Saylor indicated the company may sell some bitcoin to fund $1.5 billion in annual dividend obligations, a move that led to a 3% drop in its stock price and bitcoin falling below $81,000. The company currently has about 18 months of dividend coverage from its USD reserves. This strategy involves leveraging credit to acquire bitcoin, letting it appreciate, and selectively selling portions to meet dividend payments.