Michael Saylor Confirms Strategy's Bitcoin Sale Plan for Tax Benefits
On May 6, 2026, Michael Saylor confirmed on Strategy's Q1 earnings call that the company is prepared to sell bitcoin, reviving a tax loss harvesting strategy first used in 2022. The company had previously executed a similar move in December 2022, selling 704 BTC at $16,776 and repurchasing 810 BTC two days later to generate a tax benefit. Bitcoin fell 23% in Q1 2026, from $87,500 to $67,700, leading to a $12.54 billion unrealized loss under FASB fair value accounting rules. This created a $2.2 billion deferred tax asset across higher cost basis holdings. The proceeds from any future sale would be used to retire $8.2 billion in convertible debt, repurchase MSTR stock when the multiple to net asset value falls below 1.22x, or fund $1.5 billion in annual dividend obligations from its perpetual preferred stock. Saylor emphasized the goal of increasing 'bitcoin per share' and noted that any sale would be accompanied by immediate repurchase of bitcoin to minimize dilution. MSTR rose 1% in pre-market trading, with bitcoin above $81,000.
Key facts
- Strategy plans to sell bitcoin for tax loss harvesting, as done in 2022.
- Bitcoin fell 23% in Q1 2026, creating $12.54B unrealized loss.
- Sale proceeds to retire debt, buy stock, or fund dividends.
- Goal is to increase 'bitcoin per share' with minimal dilution.
- MSTR up 1% pre-market; bitcoin above $81,000.