The world's largest cryptocurrency asset management company, Strategy, announced that it will suspend its regular Bitcoin (BTC) purchases this week ahead of releasing its first-quarter earnings report.
“Do not buy this week. Resume work next week,” said Michael Saylor, founder and chairman of Strategy, wrote on Sunday on the social media platform X.
This is the second time this year that the Strategy has paused its weekly增持 plan. Resting from March 23 to March 29.
As of today, Strategy holds 818,334 bitcoins, accounting for approximately 3.9% of the total bitcoin supply of 21 million. Acquired Last week, the institution added 3,273 bitcoins at a price of $77,906 per bitcoin. As of 10:50 PM Eastern Time on Sunday, the cryptocurrency was trading at $80,101 per bitcoin, up 20% over the past 30 days.The Block's Bitcoin Price Page
Strategy will report its first-quarter earnings on Tuesday, with Wall Street analysts expecting a loss of $18.98 per share.Yahoo Finance The company reported a loss of $16.38 per share for the first quarter of 2025.
STRC debate
The company typically uses proceeds from the sale of its Class A common stock, MSTR, and perpetual preferred stock to fund acquisitions. One type of perpetual preferred stock, STRC, has raised concerns among analysts and investors due to its high annual dividend rate.
STRC is a perpetual preferred stock designed to trade near $100 while offering a variable monthly dividend, currently yielding approximately 11.5% annually.
K33 Research Director Vetle Lunde wrote in a March report that Strategy's active accumulation of Bitcoin is increasingly linked to introducing structural risk related to market sentiment and pricing dynamics.
Lund noted that STRC holders have limited upside from dividends but may face losses during market downturns. The analyst also pointed out that if STRC trades below its target level for an extended period, its risk profile could shift from the widely perceived stable income product to one more akin to a credit product.
Others have expressed their concerns more directly, calling STRC a "Ponzi scheme" that could eventually spiral out of control.
Meanwhile, Benchmark analyst Mark Palmerhas recently faced backlash, with critics calling STRC part of a “thoughtful and enduring” model that “transforms demand for yields into long-term Bitcoin exposure.”