Strategy Pauses Bitcoin Buying Ahead of Q1 Earnings
Investors are worried about the company‘s dependence on STRC, Strategy’s perpetual preferred security, due to the assets 11.5% dividend yield.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 Tuesdays earnings release. In anticipation of Tuesdays 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 strategys 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