Strategy, the world’s largest public holder of Bitcoin, is taking a break from cryptocurrency purchases as the company prepares its first-quarter earnings report, which is expected to be released on Tuesday.
On Sunday, Executive Chairman Michael Saylor announced “No purchases this week” in his speech. post on X, where he regularly gave signals about planned purchases.
In its latest purchase, the Tysons Corner, Virginia-based company acquired 3,273 Bitcoins for $255 million between April 20 and April 26. According to for an 8-K filing with the U.S. Securities and Exchange Commission on April 27.
Source: Michael Saylor on X
The company currently holds 818,334 BTC, purchased at an average price of $77,906 per coin, bringing the Strategy’s cost basis to $75,537. According to CoinGecko, the largest cryptocurrency by market capitalization last traded on Sunday at $78,787.08 data.
Strategy’s purchases last month, along with an influx of U.S.-listed funds, helped trigger a 12% boost in the price of BTC in April.
Related: Bitcoin is preparing its highest weekly close since January as BTC price approaches 79,000. dollars
Expected Quarterly Loss Due to STRC Dividend Analysis
Wall Street analysts expect Tuesday’s earnings report to show a loss of $18.98 per share, largely due to management’s mark-to-market accounting for Bitcoin. According to Yahoo Finance data, this means a loss for the previous year of $16.49.
On Wednesday, Saylor is scheduled to speak at the Consensus industry conference in Miami Beach, Florida.
The company’s dependence on STRC, Strategy’s preferred perpetual security, has raised concerns among some stock market watchers, largely due to the 11.5% dividend yield the asset offers investors.
Peter Schiff, chief economist and global strategist at Euro Pacific Asset Management, who previously called the strategy a “Ponzi scheme,” repeated his allegation on Sunday, questioning the company’s ability to maintain its dividend.
“Assuming that Bitcoin will grow over 11.5% per year does not change the Ponzi-like structure of STRC,” he said in a post on X.
Source: Peter Schiff on X
Seeking Alpha blogger Joseph Parrish also expressed concern about STRC’s dividend, stating in his April 28 article post that current cash reserves are insufficient to cover STRC’s two-year dividends, which will ultimately force continued sales of Strategy common stock and boost investor risk if Bitcoin underperforms.
He rates the company’s stock, trading under the ticker MSTR, as a “Hold,” citing increased leverage, uncertain catalysts and challenging risk management despite the lower share price. According to Financial Engine, his opinion differs from that of other analysts TipsRankswhich indicates a consensus rating of “Decide Buy” for Strategy shares listed on Nasdaq.
Related: “Historical average” could push Bitcoin down to 57,000. dollars: analyst