In a significant departure from its founding principle, MicroStrategy (NASDAQ: MSTR) has officially abandoned its longstanding 'never sell' Bitcoin strategy. CEO Von Lee announced during the Q1 2026 earnings call that the company will now consider selling Bitcoin when it's advantageous to do so, stating 'We won't just sit back and say, 'I'll never sell Bitcoin.' We want to be a net aggregator of Bitcoin.' Chairman Michael Saylor emphasized this shift, explaining that the company will 'increase our total holdings, but more importantly, increase Bitcoin per share.' This represents a fundamental change from the company's previous stance, as Saylor had consistently emphasized the 'never sell' principle since adopting Bitcoin standards in 2020. The change comes amid prolonged weak Bitcoin market conditions and poor first-quarter earnings, with Saylor noting that 'If a wealthy person — if a billionaire — sells a million dollars to make a billion dollars, nobody says they are poor, and nobody would lament that spending a few million dollars is going to crash the U.S. currency either.'
Between early February and late April, MicroStrategy purchased 89,599 additional Bitcoin units in the first quarter alone, bringing total holdings to 818,334 BTC as of May 3. The company spent approximately $11.68 billion in the first quarter of 2026 to support its aggressive Bitcoin buying strategy, maintaining its status as the largest U.S. stock issuer in 2026. As reported by BeInCrypto, the company's holdings now represent approximately 3.9% of Bitcoin's 21 million-coin supply cap, with an average acquisition price of $75,537. The total valuation based on market price stands at $64.1 billion as of May 1, demonstrating the company's continued commitment to accumulation despite challenging market conditions. In Q2 2026, the company has already purchased an additional 56,235 Bitcoin units for $4.1 billion at an average price of $73,400, contributing $300 million in positive fair value as prices rebounded.
The company reported a net loss of $12.54 billion in Q1 2026, with $14.46 billion attributed to unrealized losses due to Bitcoin's fair valuation. The net loss per share (EPS) was -38.25, more than double the Wall Street consensus estimate of -$18.98. The direct cause of the massive valuation loss was Bitcoin's price decline from approximately $87,000 at the beginning of the year to $68,000 at the end of March. However, MicroStrategy's 'BTC yield' recorded 9.4% this year, effectively converting capital to Bitcoin exposure. The company's $1.2 billion in annual Stretch dividend obligations create additional risk, as a sustained Bitcoin decline could impact the value of MicroStrategy's stock and potentially trigger forced selling. Despite the challenging market conditions, the company has raised approximately $11.7 billion year-to-date in 2026, with 60% from preferred equity issuances and 40% from common equity, positioning it as the largest issuer in U.S. equity capital markets at about 10% market share.
The company's Stretch shares (STRC) have grown to $8.5 billion in nine months after their launch, with daily trading volume increasing to $375 million and volatility reduced to around 3%. In the first four months of 2026, STRC funded about 77,000 of the coins that MicroStrategy acquired. The company is proposing to increase STRC dividend frequency from once to twice a month, with the first mid-month dividend scheduled for July 15. CEO Von Lee explained this change aims to 'improve price stability and liquidity by increasing the frequency of payments.' The company's 'BTC yield' of 9.4% demonstrates the effectiveness of this financing mechanism in converting capital into Bitcoin exposure. Management has proposed shifting STRC dividends from monthly to semi-monthly payments, with the first record date on June 30 and first payment on July 15, keeping economics unchanged while maintaining the company's position as the world's largest tradable preferred stock.
MicroStrategy shares weakened in after-hours trading, falling more than 4% to around $178.8 following the earnings announcement. The stock had closed up 1.69% at $186.9 during regular trading hours before reversing sharply after markets closed. The sharp decline reflects investor concerns about the company's departure from its longstanding Bitcoin accumulation strategy. Despite the challenging market conditions, MicroStrategy maintains its position as the world's largest Bitcoin financial strategy company, with CEO Von Lee emphasizing the company's intention to 'be a net aggregator of Bitcoin' while focusing on increasing Bitcoin per share rather than total holdings. The company's 'BTC breakeven ARR of 2.27% represents the inflection point where STRC issuance results in more Bitcoin being stacked than used to pay dividends, potentially allowing the company to fund dividends in perpetuity without selling common stock. Management has indicated they will 'sell some Bitcoin to fund a dividend just to inoculate the market' to demonstrate the company's financial stability and Bitcoin's market resilience.
