Strategy has decided to take a temporary break from purchasing bitcoin. In a recent statement, Michael Saylor revealed that the company will not be adding to its bitcoin holdings this week, opting to pause its regular purchase program until after the release of its first-quarter earnings.
The pause marks only the second time this year that Strategy, formerly known as MicroStrategy, has halted its weekly bitcoin purchases. The company had previously skipped a purchase during the week of March 23 to March 29. Currently, Strategy holds an impressive 818,334 BTC, equivalent to approximately 3.9% of the total bitcoin supply.
Its most recent purchase added 3,273 BTC at an average price of $77,906 per bitcoin, with the current price of BTC trading near $80,100 in Asian morning hours. The temporary pause in bitcoin purchases comes ahead of Strategy's first-quarter results, which are expected to show a loss of $18.98 per share, according to some Wall Street analysts.
Despite this, the company is expected to report a revenue of around $125 million, marking a 12.6% increase from the previous year. However, earnings are expected to be lower, with an average estimate of a loss of $27.33 per share for the March quarter.
Strategy's identity is now closely tied to bitcoin, and its valuation is no longer based on its software business, but rather as a bitcoin financing vehicle. The upcoming report is likely to be judged on the durability of Saylor's capital-raising machine, rather than its 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. The pitch is yield backed by Strategy's balance sheet and bitcoin-heavy capital strategy, but there are concerns that the product may start to look less like stable income and more like credit risk if market sentiment turns.
Higher bitcoin prices support Strategy's valuation, improving its ability to raise capital and fund more bitcoin purchases. However, when sentiment weakens, the same structure becomes more fragile. Saylor has announced that buying will resume next week, but the upcoming earnings report will reveal how much confidence investors still have in the company's machinery. Notably, Strategy raised $82 million through the sale of common stock, with no corresponding bitcoin purchases disclosed.