Michael Saylor: Strategy May Sell Some Bitcoin Before Year-End, But $1 Million Target Remains Inevitable

Michael Saylor, Executive Chairman of Strategy, has indicated that the company could sell portions of its Bitcoin holdings before the end of 2026 as part of a comprehensive capital management approach. The comments come alongside his continued strong predictions for Bitcoin's future price trajectory, including expectations that it will significantly outperform traditional benchmarks like the S&P 500.

During a recent retail investor Q&A session, Saylor explained that Strategy continuously evaluates multiple funding options including equity issuance, credit products, cash management, and selective Bitcoin sales. The primary goal remains increasing Bitcoin holdings per share over time while maintaining overall enterprise value.

Saylor emphasized that no single funding method is relied upon exclusively. Models based solely on equity, credit, or Bitcoin sales tend to deliver inferior results compared to a balanced strategy that adapts to market conditions, liabilities, and long-term shareholder value.

Balanced Capital Management and STRC Stability

Strategy reviews liabilities and determines the most appropriate funding source based on data-driven analysis. Decisions can be made rapidly depending on market dynamics, but always with a focus on multi-year outcomes for Bitcoin per share.

Regarding the company's preferred securities, particularly STRC (often referred to as Stretch),Saylor addressed questions about dividend obligations potentially forcing Bitcoin sales. He clarified that the approach prioritizes optimization of the capital structure rather than reacting to short-term pressures. Plans are underway to shift STRC dividends to semimonthly payments, subject to shareholder approval, to enhance stability around its target price level.

Saylor noted that Bitcoin holdings have varying cost bases, providing flexibility in any potential sales. The company expects return-of-capital treatment for dividends on preferred securities for the foreseeable future and does not plan to retire other perpetual preferred products.

Bitcoin's Long-Term Outperformance Expected

In separate interviews, Saylor reiterated his view that Bitcoin will outperform the S&P 500 over time. He cited an expected 30% annual return for Bitcoin, far exceeding the historical average of around 10% for the S&P 500 index.

This conviction underpins Saylor's longer-term price predictions, including Bitcoin reaching $13 million by 2045 based on sustained high returns driven by institutional adoption, government treasury strategies, and its fixed supply.

Current market conditions show Bitcoin facing headwinds such as higher interest rates, geopolitical tensions, and other capital flows. However, Saylor pointed to positive developments including progress on the CLARITY Act and potential SEC guidance on tokenized securities as factors that could support broader digital asset growth.

Digital Credit and Institutional Absorption of Supply

Saylor highlighted the role of digital credit products in absorbing Bitcoin supply. Strategy positions itself to potentially purchase miner output through 2140, when the last Bitcoin is expected to be mined.

He described Strategy's model as financial engineering that converts Bitcoin's expected capital appreciation into preferred stock dividends, creating lower-volatility credit instruments for income-focused investors while preserving upside for common equity holders.

“Bitcoin is a fighter jet. Strategy is a passenger jet for people that want a very comfortable ride,” Saylor said, contrasting the volatility of direct Bitcoin exposure with the structured products offered by the company.

Addressing Potential Risks and Regulatory Tailwinds

When asked about quantum computing threats to Bitcoin's security, Saylor dismissed immediate concerns, stating that any credible risk would prompt a network upgrade similar to routine software updates in major technology systems.

Saylor remains confident in Bitcoin's trajectory, describing $60,000 as strong support and noting entry into a positive "spring phase" supported by a bullish macro environment and regulatory progress.

Strategy continues to educate investors on its differentiated model, which goes beyond passive Bitcoin holding to active capital structure management and digital credit innovation.