MicroStrategy weighs Bitcoin sales after $12B unrealized hit; MSTR slides more than 4%

MicroStrategy (NASDAQ: MSTR) rattled investors after reporting a steep first-quarter FY2026 loss and signaling it may sell a portion of its Bitcoin holdings. The shares dropped more than 4% in after-hours trading. The company released results Tuesday, May 5, posting revenue of $124.3 million and a net loss of $12.54 billion. Management attributed the loss largely to unrealized losses on its Bitcoin position totaling $14.46 billion, after Bitcoin fell from around $90,000 to roughly $60,000"$65,000 during the period. MicroStrategy ended the quarter with $2.21 billion in cash and cash equivalents. MSTR closed the regular session up 1.69% at $186.90, trading between $183.72 and $190.41. After the close, the stock fell 4.33% to $178.80, before rebounding in premarket Wednesday, May 6, rising 2.33% to $191.25. Investor sentiment weakened after Executive Chairman Michael Saylor said the company could sell Bitcoin, with proceeds used to fund STRC dividends. On the earnings call, Saylor said, "You buy Bitcoin with credit, you let it appreciate, and then you sell Bitcoin to pay the dividend." He added that the firm may sell BTC to "inoculate the market" while maintaining exposure through credit-based instruments such as STRC. CEO Phong Le said any Bitcoin sales would be tactical and would not alter the company's long-term approach. He said sales would occur only "when it's advantageous to the company" or when they could improve Bitcoin value on a per-share basis, while also supporting debt management and the broader accumulation strategy. Despite those assurances, some market participants criticized the shift, arguing the company has been viewed as a pure Bitcoin accumulation vehicle and has long promoted a "never sell" message. Polymarket currently implies a 42% chance MicroStrategy will sell an amount equal to its Bitcoin holdings by the end of 2026. MicroStrategy's Bitcoin holdings continued to expand. The company reported 818,334 BTC on hand, up 22% year-to-date, with an average acquisition cost of $75,537 per Bitcoin. It also reported a 9.4% BTC yield so far this year, which it said has helped offset part of the drawdown. The earnings call also surfaced a greater focus on macro risk. Bitwise advisor Jeff Park said the possibility of Bitcoin sales "felt a little more material than prior calls" and noted the company appears to be incorporating global macro inputs more directly into its risk framework. Park pointed to the need to monitor Bitcoin's correlation with broader economic indicators amid expectations for potential Federal Reserve rate cuts, and said pro-crypto Kevin Warsh could be a future candidate for Fed Chair, potentially reshaping policy.