Strategy (NASDAQ: $MSTR) is fundamentally shifting its approach to digital assets, moving away from its famous “never sell” mantra. During its first quarter earnings call on Tuesday, the company announced it will actively manage its massive cryptocurrency reserves to maximize its BTC per share metric.
The strategic pivot arrives as the firm posted a staggering $12.54 billion net loss for the quarter, driven largely by a slump in Bitcoin (CRYPTO: $BTC) prices earlier this year.
Currently, the company holds 818,334 BTC, acquired at an average cost of $75,537. While this portfolio represents nearly 4% of the supply, the sheer scale of the operation has created significant financial obligations.
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The firm faces approximately $1.5 billion in annual liabilities, encompassing preferred stock dividends and interest on outstanding debt. To address these liabilities, Executive Chairman Michael Saylor and CEO Phong Le confirmed that selective selling is now on the table.
Saylor compared the new model to a real estate development firm, explaining that the company leverages credit to acquire assets, allows them to appreciate, and will now selectively sell portions to satisfy dividend commitments and debt interest.
“We will probably sell some bitcoin to pay a dividend just to inoculate the market and send the message that we did it,” Saylor remarked during the call.
While a $2.25 billion dollar reserve provides roughly eighteen months of dividend coverage, this new willingness to trade actively marks a truly historic and significant milestone for the major corporate crypto pioneer.
As the value of BTC has been sliding, so too have Strategy’s shares. Over the past 12 months, they have lost more than half of their value.