Key Takeaways
MicroStrategy Incorporated is taking a break from its aggressive Bitcoin accumulation, pausing purchases ahead of its first-quarter earnings report scheduled for May 5. The halt was announced by Executive Chairman Michael Saylor, who posted "No buys this week" on X, breaking a near-weekly cadence of acquisitions that has defined the company’s 2026 strategy.
"Gambling that Bitcoin will rise by more than 11.5% a year does not change the Ponzi like structure of STRC," Peter Schiff, chief economist at Euro Pacific Asset Management, said in a post on X. Schiff has been a vocal critic, arguing the model is unsustainable.
The software intelligence firm now holds 818,334 BTC, acquired at an average price of $75,537 per coin, giving it a 4.23% unrealized gain at current prices. Despite the recent pause, the first quarter saw the company add approximately 89,600 BTC for $5.5 billion. Wall Street analysts expect the company to report a quarterly loss of $3.41 per share, according to Zacks Investment Research, primarily driven by mark-to-market accounting rules on its Bitcoin holdings.
The decision to pause buying places a spotlight on the company’s financing methods, particularly its reliance on its perpetual preferred security (STRC), which offers an 11.5% dividend. The instrument has been crucial for funding Bitcoin purchases but has recently traded below its par value, making new capital raises less attractive. The upcoming earnings call will be closely watched by investors to see if the buying resumes or if a more yield-focused discipline will take priority.
This article is for informational purposes only and does not constitute investment advice.
