Why is Strategy (NASDAQ:MSTR) pausing Bitcoin purchases?

Strategy, led by Michael Saylor, announced “no buys this week” ahead of its Q1 earnings report. The pause likely reflects a temporary shift in focus toward financial reporting and investor scrutiny rather than a change in long-term Bitcoin strategy.

How much Bitcoin does Strategy currently hold?

Strategy holds 818,334 BTC, making it the largest public holder of Bitcoin. The company’s average purchase price is about $77,906 per coin, with a total cost basis around $75,537.

What is expected from Strategy’s Q1 earnings report?

Wall Street expects a loss of $18.98 per share, mainly due to mark-to-market accounting for Bitcoin holdings. This is slightly worse than the $16.49 loss reported in the same period last year.

How does Bitcoin price movement affect Strategy’s earnings?

Strategy marks its Bitcoin holdings to market value, meaning price fluctuations directly impact reported earnings. If Bitcoin falls, it can lead to large paper losses even if the company doesn’t sell.

What role did Strategy play in Bitcoin’s recent price movement?

Strategy’s purchases, combined with inflows into spot Bitcoin ETFs, helped drive a 12% increase in Bitcoin’s price during April. This highlights its influence as a major institutional buyer.

What is STRC and why are investors concerned?

STRC is Strategy’s perpetual preferred security offering an 11.5% dividend yield. Some analysts worry the company may struggle to sustain these payouts, especially if Bitcoin underperforms.

Why are some critics calling Strategy’s model risky?

Critics like Peter Schiff argue the model depends heavily on Bitcoin continuing to rise. If BTC fails to outperform the dividend yield, Strategy could face financial pressure, making the structure appear high-risk.

Is Strategy stock (NASDAQ:MSTR) considered a buy right now?

Opinions are mixed: some analysts rate it a “Strong Buy,” while others suggest a “Hold” due to leverage, dividend risks, and reliance on Bitcoin performance. This reflects uncertainty in the investment thesis.

Image for illustrative purposes only. Not a real photo.

Strategy pauses Bitcoin buys before Q1 earnings

Written by Liezl GambePublished May 4, 2026, 12:00 AMLast Updated Jul 6, 2026, 10:28 AM

Strategy has paused bitcoin purchases ahead of its first-quarter earnings report, with executive chairman Michael Saylor signalling “no buys this week”.

The company, the largest public holder of bitcoin, recently acquired 3,273 BTC for $255 million and now holds 818,334 BTC at an average purchase price of $77,906.

Wall Street expects Strategy to report a loss of $18.98 per share, driven largely by mark-to-market accounting on its bitcoin holdings.

“Gambling that Bitcoin will rise by more than 11.5% a year does not change the Ponzi like structure of STRC,”

Said Peter Schiff.

Concerns have grown around Strategy’s STRC preferred security, which offers an 11.5% dividend yield and may require ongoing equity issuance if bitcoin underperforms.

The company’s aggressive bitcoin buying, alongside ETF inflows, helped drive a 12% rise in BTC prices during April, underscoring its market influence. Following the update bitcoin was unchanged near $78,700.

Strategy’s shares, traded under MSTR, remain under scrutiny as investors weigh leverage, dividend sustainability and the company’s heavy reliance on bitcoin performance.

At the time of reporting, Bitcoin price was $78,960.41.

Strategy pauses Bitcoin buys before Q1 earnings

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