Strategy has paused its bitcoin acquisition activities until next week, as announced by Michael Saylor on Sunday. The company will not add to its bitcoin reserves this week in anticipation of its first-quarter earnings release scheduled for Tuesday. ‘No buys this week. Back to work next week,’ Saylor tweeted.
This break marks only the second instance this year that Strategy, which rebranded from MicroStrategy and is now recognized as the largest publicly traded bitcoin treasury company, has paused its regular purchase schedule. The previous pause occurred during March 23-29. Currently, Strategy holds 818,334 BTC, constituting roughly 3.9% of bitcoin’s total supply limit of 21 million units. Its most recent acquisition involved 3,273 BTC at an average price of $77,906 per coin, with Bitcoin trading near $80,100 during Monday’s Asian session—a rise of about 20% over the past month.
While this pause might seem insignificant, it occurs just before Strategy announces its first-quarter results. Analysts are projecting a loss of $18.98 per share for the period. The company is anticipated to report approximately $125 million in revenue according to Yahoo Finance data from six analysts—a 12.6% increase from last year’s $111.1 million, indicating that despite its bitcoin-centric identity, Strategy’s software business continues to grow.
However, earnings are expected to be lower, with Yahoo Finance predicting a loss of $27.33 per share and Zacks Research estimating a $3.41 per share deficit for the March quarter.
Strategy’s valuation has shifted from being seen as a software firm holding bitcoin to a bitcoin-centric financing entity providing business intelligence solutions. Consequently, Tuesday’s report will likely be evaluated based on Saylor’s capital-raising strategy rather than its operational performance.
STRC, a perpetual preferred share expected to trade near $100 with an 11.5% annualized dividend, is garnering attention as it relies on Strategy’s bitcoin-oriented capital strategy for yield stability. Nevertheless, the product risks being perceived more like a credit risk if market sentiment shifts negatively.
Higher Bitcoin prices enhance Strategy’s valuation and its ability to secure funding for additional purchases. Conversely, declining sentiments could weaken this model. Saylor has indicated that purchasing will resume next week, but Tuesday’s earnings will reveal how much confidence investors retain in the system supporting these acquisitions.