In anticipation of Tuesday’s first quarter earnings announcement, Strategy—the largest publicly traded Bitcoin holder in the world—has temporarily suspended all cryptocurrency acquisitions.
In a post on X, where he often signals intended acquisitions, executive chairman Michael Saylor said “No buys this week” on Sunday. The Tysons Corner, Virginia-based corporation recently spent $255 million for 3,273 Bitcoin, as revealed in an 8-K filing with the US Securities and Exchange Commission on April 27. The acquisition took place between April 20 and 26.
With 818,334 BTC in possession, acquired at an average price of $77,906 per coin, Strategy’s cost basis has increased to $75,537. Market capitalization-wise, the most valuable cryptocurrency as of Monday’s trade was $79,731, as reported by CMC. In addition to US spot price exchange-traded fund inflows and strategy’s purchases last month, April saw a 12% gain in the price of Bitcoin.
Dependence on STRC
The mark-to-market accounting for Bitcoin is the key reason why Wall Street analysts are predicting a loss of $18.98 per share in Tuesday’s earnings release. According to statistics from Yahoo Finance, the loss from the previous period was $16.49. Attendees of Wednesday’s Consensus business conference in Miami Beach, Florida may look forward to hearing Saylor speak.
Investors are worried about the company’s dependence on STRC, Strategy’s perpetual preferred security, due to the asset’s 11.5% dividend yield. Euro Pacific Asset Management’s chief economist and global strategist, Peter Schiff, who has previously referred to Strategy as a “Ponzi scheme,” reiterated his accusation on Sunday, casting doubt on the company’s capacity to maintain the dividend.
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