Strategy Says It May Sell Bitcoin to Fund Dividends
Strategy may sell part of its Bitcoin holdings to support preferred stock dividend payments.Phong Le said selective BTC sales could unlock nearly $2.2 billion in future tax savings.Strategy expanded its Bitcoin holdings to 818,334 BTC despite reporting a quarterly loss. Strategy executives said the company may sell part of its Bitcoin holdings to fund dividend payments tied to its preferred-stock structure, marking the first time senior leadership has publicly discussed reducing the firms BTC position. During the companys first-quarter earnings call, Executive Chairman Michael Saylor stated that the firm wants to maintain flexibility across its capital structure as it expands its financing tools. According to Saylor, a limited Bitcoin sale could be used to “inoculate” the market and show that the company has additional options available for shareholder-related obligations. Strategy CEO Phong Le also said the company would consider selling Bitcoin when such a move becomes accretive to shareholders. Le added that the companys objective may include selling Bitcoin acquired at prices above current market levels to realize capital losses that could generate tax benefits. Strategy Discusses Capital Flexibility and Tax Position Saylor said the company remains comfortable with its Bitcoin position despite discussing possible sales. He noted that creating additional optionality for the company