MicroStrategy, the largest public holder of Bitcoin, will pause cryptocurrency purchases this week. Executive Chairman Michael Saylor announced the break on Sunday via X, as the company prepares for its first-quarter earnings report on Tuesday. Wall Street anticipates a quarterly loss.
Executive Chairman Michael Saylor of MicroStrategy signaled a temporary halt to Bitcoin buying on Sunday, posting 'No buys this week' on X. The Tysons Corner, Virginia-based firm, which holds 818,334 BTC at an average purchase price of $77,906 per coin, recently acquired 3,273 Bitcoin for $255 million between April 20 and 26. That purchase was disclosed in an 8-K filing with the US Securities and Exchange Commission on April 27, raising the company's cost basis to $75,537 per coin. Bitcoin traded at $78,787.08 on Sunday, per CoinGecko data. MicroStrategy's recent buys, alongside inflows into US spot Bitcoin exchange-traded funds, contributed to a 12% price rise in April. The Q1 earnings report is scheduled for Tuesday, with analysts expecting a loss of $18.98 per share, up from $16.49 a year earlier, due to mark-to-market Bitcoin accounting. On Wednesday, Saylor is set to speak at the Consensus conference in Miami Beach, Florida. Critics have raised concerns over the company's reliance on its STRC perpetual preferred security, which offers an 11.5% dividend yield. Peter Schiff, chief economist at Euro Pacific Asset Management, reiterated on X that the structure resembles a 'Ponzi scheme,' stating, 'Gambling that Bitcoin will rise by more than 11.5% a year does not change the Ponzi like structure of STRC.' Seeking Alpha contributor Joseph Parrish warned on April 28 that cash reserves may not cover two years of STRC dividends, potentially forcing common stock sales. He rates MicroStrategy shares (MSTR) a 'Hold,' while TipRanks shows a consensus 'Strong Buy' rating.
