Strategy Pauses Bitcoin Buying Before Q1 Earnings Report

Strategy, the largest public holder of Bitcoin, has stopped buying BTC ahead of its first quarter earnings release on May 5. Executive Chairman Michael Saylor announced "No buys this week" on X, where he routinely posts purchase updates. The company reports earnings Tuesday.

Strategy's last purchase was 3,273 BTC bought between April 20 and 26 for $255 million. That averages $77,906 per coin, per an SEC 8-K filing dated April 27. The company now holds 818,334 BTC — roughly 3.9% of Bitcoin's total circulating supply.

Bitcoin trades near $79,932 today, above Strategy's average cost basis of $75,537. The company currently sits on an unrealized gain at current market prices. That was not the case at the end of Q1, when Bitcoin was lower.

The Q1 Numbers That Matter

Strategy recorded a $14.46 billion unrealized loss on digital assets for the quarter ending March 31. Bitcoin's price fell below the company's cost basis during that period. The loss generated a $2.42 billion deferred tax benefit and left digital assets with a carrying value of $51.65 billion.

Wall Street analysts expect a per-share loss for Q1. Yahoo Finance consensus puts the loss at $18.98 per share. Zacks places it lower at $3.41 per share. Both estimates exist because the accounting treatment — mark-to-market under new FASB rules — amplifies quarterly swings. Revenue consensus stands near $125 million, up roughly 12% year-over-year.

How Strategy Got Here

Strategy began converting its treasury into Bitcoin in August 2020 under then-CEO Saylor. The original bet was roughly $250 million. Since then, the company has raised capital repeatedly through stock and debt offerings to fund further purchases.

In Q1 2026 alone, Strategy expanded holdings from about 713,000 BTC to over 818,000 BTC. January's purchases exceeded 41,000 BTC. The company has used at-the-market equity offerings and preferred stock issuances to fund this pace of accumulation.

April's purchases, combined with spot Bitcoin ETF inflows, helped push BTC price up 12% during the month. Strategy's buying activity is now large enough that its purchase cadence moves market sentiment.

The STRC Problem

The most pressing concern heading into Tuesday's report is not the Bitcoin loss — it is the STRC preferred security. STRC pays an 11.5% annual dividend yield. That is an expensive ongoing obligation.

Seeking Alpha analyst Joseph Parrish argued on April 28 that current cash reserves cannot cover two years of STRC dividends. He says this will force continued issuance of common stock, diluting shareholders if Bitcoin underperforms. He rates MSTR a "Hold."

Peter Schiff, chief economist at Euro Pacific Asset Management, repeated his "Ponzi scheme" claim on Sunday. He argued that betting on Bitcoin rising more than 11.5% per year does not resolve the structural issue with STRC's dividend obligations. Schiff has made this argument repeatedly, and Strategy's stock price has largely ignored it.

TipRanks shows a consensus "Strong Buy" rating on MSTR among Wall Street analysts, contrasting with the bearish minority view. TD Cowen recently raised its MSTR price target to $385. B. Riley set a target of $188. The wide gap between those numbers reflects genuine disagreement on how much premium the market should assign Strategy beyond its raw Bitcoin holdings.

What the Pause Means

A one-week break from buying is not unusual for Strategy before earnings filings. Insider trading rules and quiet period conventions limit corporate activity around earnings releases. Saylor's public signal follows a pattern he has established — weekly posts confirming or denying purchases.

The company has now spent approximately $63.7 billion accumulating its Bitcoin position. With BTC at current prices, the portfolio is worth roughly $65.5 billion. The margin between cost and market value is thin, and Bitcoin's volatility means that gap can close fast. Strategy's next move after earnings will likely resume its standard acquisition pace, provided market conditions hold.