Strategy, the world’s largest public holder of Bitcoin, is taking a break from buying the cryptocurrency as the company prepares its first-quarter earnings report, scheduled for Tuesday.
On Sunday, CEO Michael Saylor announced that “no purchases this week” ua publish on X, where he regularly signaled planned purchases.
In its latest purchase, the Tysons Corner, Virginia-based company acquired 3,273 Bitcoins for $255 million between April 20 and 26, according to in an 8-K filing with the U.S. Securities and Exchange Commission on April 27.
Source: Michael Saylor on X
The company now holds 818,334 BTC, purchased at an average price of $77,906 per coin, raising Strategy’s cost basis to $75,537. The largest cryptocurrency by market cap last traded at $78,787.08 on Sunday, according to CoinGeck data.
Strategy’s purchases last month, along with inflows of US exchange-traded funds at the spot price, helped fuel a 12% increase in the price of BTC during April.
Related: Bitcoin is poised for its highest weekly close since January as the price of BTC nears $79k
Expected quarterly loss amid STRC’s dividend watch
Wall Street analysts expect Tuesday’s earnings report to show a loss of $18.98 per share, largely due to management accounting for Bitcoin’s market price. That compares with a year-ago loss of $16.49, according to Yahoo Finance.
On Wednesday, Saylor is scheduled to speak at the Consensus industry conference in Miami Beach, Florida.
The company’s reliance on STRC, Strategy’s perennial preferred security, has raised concerns among some stock watchers, primarily because of the 11.5% dividend yield the asset offers investors.
Peter Schiff, chief economist and global strategist at Euro Pacific Asset Management, who previously called Strategy a “Ponzi scheme,” reiterated his claim on Sunday, questioning the company’s ability to maintain its dividend.
“Gambling that Bitcoin will rise more than 11.5% per year does not change the STRC structure like a Ponzi,” he said in a post on X.
Source: Peter Schiff on X
Concerns about STRC’s dividend also came from Seeking Alpha blogger Joseph Parrish, who said in his April 28 publish that current cash reserves are insufficient to cover two years of STRC’s dividends, which will ultimately force continued sales of Strategy’s common stock and increase investor risk if Bitcoin weakens.
He rates the company’s stock, which trades under the ticker symbol MSTR, a “Hold,” citing increased leverage, uncertain catalysts and challenging risk management despite the lower share price. His opinion is at odds with other analysts, according to Financial Engine TipRanksindicating a consensus rating of “Strong Buy” for Strategy’s Nasdaq-listed stock.
Related: ‘Historical average’ could push Bitcoin to bottom at $57k level: analyst
