Strategy Pauses Bitcoin Buys After Acquiring 818,334 BTC
Strategy Executive Chairman Michael Saylor announced the company won't buy Bitcoin this week, breaking a months-long buying streak ahead of the firm's Q1 earnings report.
Key Takeaway
Strategy's buying pause signals caution ahead of a projected $18.98 loss per share for Q1.
Strategy Executive Chairman Michael Saylor announced the company won't buy Bitcoin this week, breaking a months-long buying streak ahead of the firm's Q1 earnings report scheduled for Tuesday.
"No buys this week," Saylor posted on X Sunday. The announcement came after Strategy, formerly MicroStrategy, had consistently added to its position through aggressive debt and equity raises. The company's last purchase came between April 20 and 26, when it acquired 3,273 Bitcoin for ₱15.65 billion ($255 million).
Strategy now holds 818,334 BTC at an average purchase price of ₱4,782,196 ($77,906) per coin. With Bitcoin trading at ₱4,836,275 ($78,787) on Sunday, the company sits on a small unrealized gain. Wall Street analysts expect the firm to report a loss of ₱1,165.07 ($18.98) per share for Q1, worse than the ₱1,012.23 ($16.49) loss posted a year earlier.
Euro Pacific Asset Management Chief Economist Peter Schiff called out Strategy's business model in a Sunday post on X, saying gambling that Bitcoin will rise by more than 11.5% a year does not change the Ponzi-like structure of STRC, referring to the firm's preferred stock dividend yield. Seeking Alpha blogger Joseph Parrish rated the stock a hold on April 28, citing insufficient cash reserves to cover two years of STRC dividends.
The pause announcement comes as Strategy prepares to face investors after Bitcoin climbed 12% in April. Saylor is scheduled to speak at the Consensus conference in Miami Beach on May 7, one day after the earnings release.
This article was written based on reporting from Cointelegraph.
