Strategy has temporarily suspended its bitcoin purchasing program. In a statement on Sunday, CEO Michael Saylor revealed that the company would refrain from adding to its bitcoin holdings this week, ahead of the release of its first-quarter earnings on Tuesday. Saylor indicated that the buying would resume the following week. This pause marks only the second instance this year for Strategy, a company that has established itself as the largest publicly traded bitcoin treasury and a closely watched proxy for institutional bitcoin exposure.
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, which accounts for nearly 3.9% of the total bitcoin supply. As Strategy prepares to report its first-quarter results, some Wall Street analysts anticipate a loss of $18.98 per share. The company is expected to post revenue of approximately $125 million, representing a 12.6% increase from the same quarter last year.
However, earnings are projected to be lower, with an estimated loss of $27.33 per share. Strategy's valuation is now closely tied to its bitcoin financing activities, rather than its software business.
As a result, the upcoming earnings report may be judged more on the resilience of Saylor's capital-raising strategy and less on the company's operating performance. One key product, STRC, a perpetual preferred share, has drawn attention for its variable monthly dividend, currently around 11.5% annualized.
While the product is designed to provide stable income, it may become increasingly fragile if market sentiment shifts. The company's ability to raise capital and fund bitcoin purchases is closely linked to the performance of its bitcoin holdings.
With bitcoin prices currently trading near $80,100, Strategy's valuation and ability to raise capital have improved. However, the company's complex funding model and high reliance on bitcoin prices make it vulnerable to market fluctuations. The resumption of bitcoin buying next week, as announced by Saylor, will be closely watched by investors, who will be looking for signs of confidence in the company's machinery.