I’ve paused my Bitcoin buys for the next week. It’s just ahead of the earnings report, and there’s been some talk about the dividend on their preferred stock, so I’m taking a cautious approach right now.
Summary
- Strategy has paused Bitcoin purchases for the week ahead of its first quarter earnings report, with Michael Saylor confirming no buys in a Sunday update.
- The company last acquired 3,273 BTC for $255 million, taking total holdings to 818,334 BTC valued at roughly $63.7 billion.
- Analysts expect a $18.98 per share loss, while criticism has intensified around STRC’s 11.5% dividend and its long-term sustainability.
Michael Saylor announced on X (formerly Twitter) on Sunday that his company wouldn’t be purchasing any more Bitcoin this week. This is a change from his usual practice of letting people know when they plan to buy more.
Following consistent Bitcoin purchases, Strategy recently bought 3,273 Bitcoin for approximately $255 million between April 20th and 26th. The company funded this purchase by selling 1,451,601 shares of its stock, as detailed in a filing with the Securities and Exchange Commission. Yahoo Finance reported the average price per Bitcoin was $77,906.
MicroStrategy now holds 818,334 bitcoins, purchased for around $61.81 billion at an average price of $75,537 each. With bitcoin currently trading near $78,000, the company’s holdings are now worth approximately $63.7 billion, resulting in an unrealized profit of about $1.9 billion.
According to crypto.news, Strategy bought over 34,000 Bitcoin for $2.54 billion in just one week last month – one of their biggest purchases ever. Throughout April, they spent more than $3 billion on Bitcoin through four separate transactions, funded by selling some of their company stock and issuing a special type of security called STRC.
Investors are focusing on Strategy’s next earnings report, with expectations of a loss driven by how the company accounts for its Bitcoin holdings. According to Yahoo Finance, analysts predict a loss of $18.98 per share for the quarter, a larger loss than the $16.49 per share loss reported during the same period last year. This increased loss is mainly due to adjustments in the current market value of its Bitcoin holdings.
Recently, there’s been increased attention on STRC, a company currently offering an 11.5% dividend. Peter Schiff reiterated his concerns on Sunday, explaining in a post on X that depending on Bitcoin’s price increasing beyond that yield doesn’t fix what he sees as a potentially unsustainable system, similar to a Ponzi scheme.
As an analyst, I’m flagging a sustainability concern raised by Joseph Parrish. He pointed out on April 28th that our current cash reserves might not be enough to cover STRC dividend payments for the next two years. He believes we could potentially need to issue more stock to compensate, which would be risky if Bitcoin doesn’t perform as well as anticipated.
Even though some investors are worried about Strategy’s debt, dividend payments, and need to raise money from investors, TipRanks data indicates that analysts strongly recommend buying the company’s stock.
Strategy currently has $26.47 billion worth of MSTR stock it can still sell, as stated in its most recent report. This means the company can continue buying Bitcoin without needing to find additional funding.
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2026-05-04 08:49