Strategy may sell BTC to fund $1.5B dividends as shares drop
Strategy plans to sell part of its BTC holdings to fund about $1.5B in dividends. CEO Michael Saylor said the company may “sell some of its Bitcoin” if needed, using a credit-funded model where BTC is bought, allowed to appreciate, and then sold to meet dividend obligations.
Strategy holds roughly 818,334 BTC at an average cost near $75,537 per coin, and the firm is also managing debt-interest and liquidity needs after reporting a Q4 2025 net loss of $12.54B.
Market reaction was swift: Strategy shares fell more than 4% in after-hours trading, and BTC briefly slipped below $81,000. Traders may treat the potential Strategy BTC sale as an incremental supply overhang, raising near-term volatility around key BTC levels.
Bearish
The announcement increases the probability of near-term BTC supply. Although Strategy frames sales as orderly funding for dividends (about $1.5B) within a credit-to-BTC model, traders often price in the risk that BTC will be sold into the market around obligation dates.
In the short term, this can pressure BTC through an “incremental supply” narrative, reflected by the immediate reaction: Strategy shares fell and BTC slipped below $81,000. That suggests elevated sensitivity to further headlines and heightened volatility around key BTC levels.
Long term, the company’s average cost and use of leverage for BTC exposure could remain supportive if BTC continues to trend higher and coverage remains adequate. However, based on the two summaries’ emphasis on potential BTC selling as an overhang, the expected price impact on BTC itself leans bearish.