MicroStrategy Executive Chairman Michael Saylor stated the company may sell some Bitcoin before the end of the year as part of a broader capital management plan that includes equity issuance, credit issuance, and cash management. During a retail investor Q&A hosted by Natalie Brunell, Saylor said the company evaluates funding choices continuously and aims to increase Bitcoin per share over time. The company does not rely on a single funding method and has modeled several options for meeting obligations, with mixed approaches outperforming models limited to equity, credit, or Bitcoin sales alone.
Saylor emphasized that MicroStrategy's main objective remains the growth of Bitcoin per share, total Bitcoin holdings, and enterprise value. He stated: "I think it's not unlikely that we'll sell some Bitcoin between now and the end of the year," while noting the company had not determined how much Bitcoin it may sell. Decisions would depend on market conditions, liabilities, credit risk, and long-term value for shareholders.
Capital Management Strategy
Saylor described MicroStrategy's funding approach as programmatic and data-driven, with the company reviewing whether liabilities should be funded with cash, equity, credit, or Bitcoin. Decisions are sometimes made very quickly depending on market conditions, with the company's stated aim to take actions that support Bitcoin per share over a multi-year period.
Regarding tax implications, Saylor said selling Bitcoin would not necessarily change the tax treatment of dividends on MicroStrategy's preferred products. He noted the company has Bitcoin with cost bases ranging from about $10,000 to $125,000 and could sell coins with a higher cost basis if needed. MicroStrategy expects return-of-capital treatment for dividends on its preferred securities for the foreseeable future.
STRC Dividend Frequency Change
MicroStrategy executives addressed the company's plan to move STRC dividends from monthly to semimonthly, subject to shareholder approval. Saylor said the change is intended to improve the performance of STRC and support its trading around the $100 target level. He noted the company is not legally required to defend that price but treats it as a central business objective.
Saylor said MicroStrategy has taken several actions to strengthen STRC, including raising the dividend, building a U.S. dollar reserve, buying back senior debt, and asking shareholders to approve more frequent dividend payments. He described STRC as the company's flagship credit product and said its stability is a core performance measure.
MicroStrategy President and CEO Phong Le said the company considered dividend frequency changes for other preferred products but chose to focus on STRC first. He said the firm views STRC as its largest and most innovative credit product and wants to improve it before making changes to other securities.
Saylor also said MicroStrategy does not plan to retire its other perpetual preferred products, including STRF, STRD, and STRK. He said the company views them as useful parts of the capital structure, while convertible bonds are senior liabilities that MicroStrategy intends to retire over time.
Long-Term Bitcoin Strategy and Digital Credit
In a concurrent CNBC interview, Saylor said he believes Bitcoin reaching $1 million is only a matter of time. He argued that institutional demand and digital credit products could absorb newly mined Bitcoin supply over the long term. He said MicroStrategy may buy the Bitcoin produced by miners through 2140, when the final Bitcoin is expected to be mined.
Saylor described digital credit as a structure that converts expected Bitcoin capital appreciation into preferred stock dividends. He said STRC targets a $100 price and uses a variable dividend rate to support that level. He compared common equity to a higher-volatility Bitcoin-linked instrument, while describing STRC as a lower-volatility credit product for investors seeking income.
Saylor also addressed market conditions, saying Bitcoin has faced headwinds from higher long-term interest rates, trade tensions, global conflicts, AI-related capital flows, and miner selling. He said potential regulatory developments, including the Clarity Act and guidance on tokenized securities, could support the broader digital asset market.
On quantum computing, Saylor said that if a credible threat to Bitcoin emerged, the network would be upgraded. He compared such a process with software updates used by large technology and financial systems.
MicroStrategy executives said the company's long-term focus remains Bitcoin per share, BTC yield, and the growth of digital credit. Saylor said the company will continue educating investors on how its model works and how it differs from a passive Bitcoin holding vehicle.
