MicroStrategy Plans to Sell Bitcoin, MSTR Stock Slips Over 4%

Key Insights:

• MicroStrategy reported its first-quarter earnings results for FY26 on Tuesday, May 5.
• It announced massive unrealized losses of over $12 billion, owing to Bitcoin’s decline during the period.
• Now, the company could consider selling its BTC reserve, which sent MSTR stock down after hours.

MicroStrategy (NASDAQ: MSTR) has experienced a notable drop in its stock price after its Q1 2026 earnings. The weak earnings report and Executive Chairman Michael Saylor’s statement on selling Bitcoin could have led to the fall.

MSTR Stock Plunges as MicroStrategy Eyes Selling Bitcoin

The MSTR stock fell sharply by more than 4% after the market closed. In the regular session, the MicroStrategy share price rose 1.69% to close at $186.90 on Tuesday, May 5. For the day, MSTR stock traded between $183.72 and $190.41.

However, during the after hours, the MSTR stock ended up falling 4.33% to $178.80. Nonetheless, it has since recovered, gaining 2.33% to $191.25 in pre-market trading on Wednesday, May 6.

Earlier, investor sentiment turned negative when Saylor announced that the firm could sell some of its Bitcoin holdings. He said the proceeds would be used to pay off STRC dividends.

During the earnings call, he explained, “You buy Bitcoin with credit, you let it appreciate, and then you sell Bitcoin to pay the dividend.”

He noted the company is planning to sell BTC to “inoculate the market” and maintain exposure through other credit-based instruments such as STRC. CEO Phong Le reiterated that any Bitcoin sales will be conducted tactically, not changing the long-term philosophy.

He noted that offloading would occur “when it’s advantageous to the company” or to boost Bitcoin’s per-share value. This could also help the firm’s debt management efforts and its overall accumulation strategy, he added.

Even in light of such assurances, market participants criticized MicroStrategy. They viewed it as a pure Bitcoin accumulation company and slammed it for deviating from its “never sell” motto. Moreover, Polymarket currently shows a 42% chance that MicroStrategy will sell the same amount of its Bitcoin holdings by the end of 2026.

Bitcoin’s Fall Has Caused Heavy Losses For MicroStrategy

Meanwhile, MicroStrategy reported total revenue of $124.3 million and a net loss of $12.54 billion for the first quarter. Unrealized losses from its Bitcoin holdings of $14.46 billion became the main reason for the loss. For context, Bitcoin price fell to the $60,000-$65,000 range from $90,000 during the period.

The company also reported $2.21 billion in cash and cash equivalents at the end of the quarter. Meanwhile, its Bitcoin holdings grew tremendously despite the loss.

MicroStrategy currently has 818,334 BTC on hand, up 22% year-to-date. On average, the price of acquiring a Bitcoin is $75,537. Also, the company claims that it has achieved a 9.4% BTC yield so far this year, which offsets some of the losses.

Macro Factors Enter the Equation

There was a shift in tone during the MicroStrategy earnings call from purely negative to a more neutral perspective. It especially addressed how macroeconomic concerns could affect the company and Bitcoin.

Bitwise advisor Jeff Park emphasized that the prospect of selling Bitcoin “felt a little more material than prior calls.” He also indicated that the company is increasingly factoring global macro risk factors into its risk framework.

“One thing Strategy historically hasn’t discussed as much is how global macro inputs might change their risk analysis,” Park said.

He also highlighted the need for Bitcoin’s correlation with general economic indicators amid the prospect of Fed interest rate cuts. Park cited that pro-crypto Kevin Warsh could soon take the Fed Chair position and could introduce policy changes.

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