MicroStrategy pauses Bitcoin buys ahead of Q1 results

MicroStrategy paused Bitcoin purchases this week as it prepared to report first-quarter earnings. Executive Chairman Michael Saylor posted “No buys this week” on X, where he has previously signaled planned purchases.

The Tysons Corner, Virginia-based company reported in an SEC 8-K filing that it bought 3,273 BTC for $255 million between April 20 and April 26. MicroStrategy now holds 818,334 Bitcoins with an average purchase price of $77,906 per coin and a company cost basis of $75,537. Bitcoin consolidated around $78,000 on Sunday.

Analysts expect MicroStrategy to report a loss of $18.98 per share for the quarter, wider than the $16.49 loss recorded a year earlier. The larger loss reflects mark-to-market accounting for the company’s Bitcoin holdings and is a factor investors are watching ahead of Tuesday’s earnings release.

Investors have also focused on STRC, MicroStrategy’s perpetual preferred security, which carries an 11.5% dividend yield. Concerns center on whether the company’s cash flows and reserves can sustain that dividend over time.

Financial commentator Joseph Parrish wrote that current cash reserves appear insufficient to cover two years of STRC dividend payments and said that shortfalls could require continued sales of MicroStrategy common stock if Bitcoin underperforms.

Peter Schiff, chief economist at Euro Pacific Asset Management, reiterated his criticism on X, writing, “Gambling that Bitcoin will rise by more than 11.5% a year does not change the Ponzi like structure of STRC.”

MicroStrategy has described its strategy as offering investors exposure to Bitcoin through corporate balance-sheet holdings and preferred securities. The company’s approach includes regular disclosures of purchases and holdings.

Market views on MicroStrategy shares are mixed. Some analysts maintain buy ratings on the Nasdaq-listed MSTR stock, while others warn of higher leverage, uncertain catalysts and risks tied to the company’s capital allocation and dividend commitments.

Michael Saylor is scheduled to speak at the Consensus industry conference in Miami Beach on Wednesday. Investors and analysts will monitor the earnings report and his remarks for information on capital allocation, Bitcoin buying plans and the company’s approach to STRC dividends.

The temporary pause in purchases comes after MicroStrategy’s late-April acquisition and ahead of the quarter-end results, sharpening attention on the company’s financial statements and disclosure of Bitcoin-related accounting effects.