1 Peter 2:5

‘You also, as living stones, are built up a spiritual house, to be a holy priesthood, to offer up spiritual sacrifices, acceptable to God through Jesus Christ.'

And as a result of this contact with this ‘Living Stone', His people also have been made into ‘living stones' by Him (and have thus become spiritually alive, vibrant, dependable and heavenly). And they are being built up on Him into a living, vibrant ‘spiritual house' (a living House of the Spirit), in order that they might be a holy priesthood, a priesthood who, having been set apart to God and made worthy, are to offer up spiritual sacrifices, which are acceptable to God through Christ Jesus.

As a ‘living stone' Jesus was subject to examination by the builders and by the Master Builder, being rejected after examination by the former and made the chief Cornerstone by the latter (1 Peter 2:7), Who alone knew what He was doing. The implication is that, in the same way, we as living stones have also been carefully prepared by the Master Builder for our position in His Temple. (Compare how Paul uses a similar illustration of us being different members of the body - 1 Corinthians 12).

In a sense this may appear to be a case of mixed metaphor. One moment we appear to be thinking of the stones of the Sanctuary itself, and the next moment of the priesthood, but it is doubtful if a Jew would have seen it in that way, for to him the priesthood was an essential part of the Sanctuary. Without the priesthood the Sanctuary was not complete. They were the living part of the Sanctuary, keeping Israel in constant contact with the living God Who was manifested in the Holy of Holies. Thus Sanctuary and priesthood could be seen as one. And in the same way Christians are both Spirit indwelt Sanctuary and Spirit impelled priesthood, house and household, and the implication coming from this, drawn out explicitly in the letter to the Hebrews, is that Jesus as Chief Cornerstone is also High Priest.

As Christians then we are built up into ‘a spiritual house (oikos pneumatikos),' that is, into a house and household possessed and indwelt by the Spirit (1 Corinthians 3:16), and into ‘a holy' priesthood, that is, a priesthood ‘set apart wholly to the Lord's service'. This is why there can now be no separate priesthood, for we are all priests, and all can offer up spiritual sacrifices which are acceptable to God. We note that no option is given. Peter leaves them no room for choice. They cannot opt in or opt out. This is their destiny now that they are His.

‘Spiritual sacrifices, acceptable to God through Christ Jesus'. As His priests we are called on to offer up spiritual sacrifices to Him, and we do this through the One Who is the ultimate Priest and sacrifice (compare Hebrews 2-10). We learn elsewhere what these spiritual sacrifices are. They are the sacrifices of praise and thanksgiving and true worship (Hebrews 13:15; Psalms 50:14; Psalms 51:17; Psalms 69:30; Psalms 107:22; Psalms 116:17; Psalms 141:2; Hosea 14:2). And they include the offerings of ourselves in our daily lives as ‘living' sacrifices (note that even the sacrifices remain alive in this living house. The death once for all has been suffered by Another) as we commit ourselves to the will of God (Romans 12:1). They also include our good works which bring glory to our Father in Heaven (Matthew 5:16; Hebrews 13:16), our sharing together in living fellowship (Hebrews 13:16) and our gifts made from a true heart to His servants (Philippians 4:18).

Strictly speaking this idea of spiritual sacrifices does not include participation in the Lord's Supper, for that is not ‘a spiritual sacrifice', it is rather a participation in His once-for-all sacrifice for us. Partaking in it is the participation in the sacramental meal after the once-for-all sacrifice has been offered, on which we can constantly come to feast (John 6:35). It is seen as our making our regular commitment to God's covenant, as we partake of Him in the bread and wine, through the blood originally shed, not as in any way offering a ‘sacrifice'. It is never described in such a way. Rather through it we benefit from His past sacrifice on the cross made once-for-all. By it we participate continually in the Lord and join with Him in living fellowship (it is a ‘sharing in common with Him'), making a commitment of ourselves to God and to each other (1 Corinthians 11:16). There is, however, a ‘spiritual sacrifice' involved in the Lord's Supper, and that is found in  our offering of ourselves afresh to Him in His service. And on that ground we may include it here. But we must not be loose in our thinking and turn it into what it is not.