Strategy has momentarily stopped its bitcoin purchasing program. In a statement on Sunday, Michael Saylor revealed that the company will not be adding to its bitcoin holdings this week, instead opting to resume purchases after the release of its first-quarter earnings on Tuesday.
Saylor took to X to announce the pause, stating 'No buys this week. Back to work next week.' This marks only the second time this year that Strategy, formerly known as MicroStrategy, has halted its weekly bitcoin purchases, with the previous pause occurring between March 23 and March 29. The company currently holds an impressive 818,334 BTC, accounting for nearly 3.9% of the total 21 million bitcoin supply. Its most recent purchase saw the addition of 3,273 BTC at an average price of $77,906 per bitcoin.
As of Monday's Asian morning hours, BTC was trading at approximately $80,100, representing a 20% increase over the past month. The temporary pause may seem insignificant, but it comes at a time when Strategy is expected to report a loss of $18.98 per share in its first-quarter results.
According to data from Yahoo Finance, which compiled estimates from six analysts, Strategy's first-quarter revenue is expected to reach around $125 million, marking a 12.6% increase from the $111.1 million reported in the same quarter last year. This suggests that the company's underlying software business is still experiencing growth, despite its identity being heavily tied to bitcoin. However, earnings are expected to be lower, with Yahoo Finance estimating an average loss of $27.33 per share for the March quarter, while Zacks Research data points to an expected loss of $3.41 per share. Strategy is no longer viewed as a software company with a bitcoin position, but rather as a bitcoin financing vehicle that also provides business intelligence software.
As a result, Tuesday's report may be judged more on the sustainability of Saylor's capital-raising strategy and less on the company's true operating performance. One product that has drawn attention is STRC, a perpetual preferred share designed to trade near $100 while paying a variable monthly dividend, currently around 11.5% annualized. The product's pitch is centered around yield backed by Strategy's balance sheet and bitcoin-heavy capital strategy.
However, concerns have been raised that the product may start to resemble credit risk rather than stable income if market sentiment shifts. Higher bitcoin prices support Strategy's valuation, enhancing its ability to raise capital and fund further bitcoin purchases.
Conversely, when sentiment weakens, the same structure becomes more fragile. Saylor has stated that bitcoin purchases will resume next week, but Tuesday's earnings report will be closely watched to gauge investor confidence in the company's funding model.
Notably, Strategy raised $82 million through the sale of common stock, according to a recent 8-K filing, although no corresponding bitcoin purchases were disclosed.