MicroStrategy, now known as Strategy, has reported a significant net loss of $12.54 billion for Q1 2026, primarily due to mark-to-market losses on its Bitcoin holdings. The company holds approximately 818,334 BTC, with a cost basis of $75,537 each, and faces $1.5 billion in annual preferred dividend obligations. Executive Chairman Michael Saylor has indicated that Bitcoin sales may be considered to meet these obligations, marking a shift from the company's previous "never sell" policy. Market sentiment reflects a growing expectation of Bitcoin sales by Strategy before the end of 2026, with prediction markets pricing an 85.5% likelihood of such sales, up from 70% the previous day. This potential move is seen as exerting downward pressure on Bitcoin's price predictions for May 2026. Investors are closely watching for further announcements from Strategy's leadership and any SEC filings that might reveal financial strategy changes or liquidity issues.