MSTR Stock Price Falls Over 4% as Michael Saylor Considers Selling Strategy’s Bitcoin

Strategy (formerly MicroStrategy), the largest corporate Bitcoin treasury, recorded a sharp drop in MSTR stock price in after-hours trading. This comes after its Q1 2026 earnings release and Michael Saylor’s comments on a potential shift in Bitcoin strategy.

Michael Saylor Proposes Selling Some Bitcoin to Pay Dividends

During the Q1 2026 earnings call, executive chairman Michael Saylor said the company may sell some of its Bitcoin holdings to fund dividend payments. He described it as a way to “inoculate the market” while using STRC credit to accumulate more Bitcoin over time.

You buy bitcoin with credit, you let it appreciate, and then you sell bitcoin to pay the dividend.

Strategy CEO Phong Le added that Bitcoin sales could be considered “when it’s advantageous to the company” or if it helps increase Bitcoin per share value. He claimed it will help manage debt and benefit shareholders, but Bitcoin accumulation remains the goal.

The comments have introduced uncertainty over a potential increase in MSTR stock price. Notably, Polymarket traders are now pricing a 42% probability that Strategy will sell its Bitcoin by the end of 2026.

Key Takeaways from Q1 Financial Results and Earnings Call

Strategy reported a net loss of $12.54 billion and total revenues of $124.3 million. The primary driver of the loss is $14.46 billion in unrealized losses on its digital assets, as the Bitcoin price fell sharply during the period. Also, the company has $2.21 billion in cash and cash equivalents.

Strategy’s Bitcoin holdings increased 22% year-to-date to 818,334 BTC, acquired at an average cost of $75,537 per coin. The company highlighted a 9.4% BTC yield achieved year-to-date.

Bitwise advisor Jeff Park said selling BTC on the balance sheet “felt a little more material than prior calls.” He revealed that STRC was also cited in the early development phase despite raising over $8 billion.

“One thing Strategy historically hasn’t discussed as much is how global macro inputs might change their risk analysis,” Jeff Park added. He believes it will become more important with the rise of STRC, given its fixture as a floating instrument, as “we are now weeks away from Kevin Warsh’s inauguration as Fed Chair.

He claims Bitcoin’s correlation with macro factors will be key for MSTR stock price, given expectations of lower rates. The biggest thing missing from the earnings call was the upper limit of BTC supply the company plans to acquire. As CoinGape reported, Ondo Finance launched tokenized STRC stock.

my three main takeways from MSTR earnings call, which i had the privilege to participate as an analyst-

1) selling BTC on the balance sheet for relative value trades was openly discussed in ways that felt a little more material than prior calls. think its overall constructive to…

— Jeff Park (@dgt10011) May 5, 2026

MSTR Stock Plunges More Than 4%

Investors have long viewed MSTR stock as a leveraged Bitcoin proxy, with any hint of selling is a potential risk to its premium valuation. With Michael Saylor’s strategy continuing to raise capital aggressively to purchase Bitcoin, stock dilution has become a key risk for investors.

Michael Saylor’s pivot from “never sell” to considering selling some Bitcoin holdings could impact MSTR stock price and broader corporate adoption of crypto assets.

MSTR stock price closed up about 1.69% at $186.90 on Tuesday. However, the stock dropped 4.33% in after-hours trading. The intraday low and high were $183.72 and $190.41, respectively.

Meanwhile, Bitcoin price has held above $81,190 despite significant profit booking. The 24-hour low and high are $80,516 and $81,751, respectively. However, trading volume has further dropped by 17% over the last 24 hours, indicating a decline in interest among traders.