Strategy has temporarily suspended its bitcoin purchasing program. Michael Saylor announced on Sunday that the company would 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 on Tuesday. Saylor stated, 'No buys this week.
Back to work next week,' indicating a brief hiatus. This pause marks only the second instance this year for Strategy, which has established itself as the largest publicly traded bitcoin treasury company.
The company's most recent purchase added 3,273 BTC at an average price of $77,906 per bitcoin, bringing its total holdings to 818,334 BTC, equivalent to nearly 3.9% of bitcoin's fixed 21 million supply. The pause comes ahead of Strategy's first-quarter results, with Wall Street analysts anticipating a loss of $18.98 per share. Despite this, the company is expected to report a revenue of approximately $125 million, representing a 12.6% increase from the previous year.
The earnings report is likely to be scrutinized, with a focus on the company's bitcoin financing vehicle and its ability to raise capital. Strategy's perpetual preferred share, STRC, has drawn attention for its variable monthly dividend, currently around 11.5% annualized. However, concerns have been raised regarding the product's potential to be perceived as credit risk if market sentiment shifts.
The company's ability to raise capital, supported by higher bitcoin prices, will be closely watched in the upcoming earnings report. Notably, Strategy raised $82 million through the sale of common stock, according to a recent 8-K filing, with no corresponding bitcoin purchases disclosed.