Strategy Pauses Bitcoin Purchases Amid STRC Dividend Criticism

April 29, 2025 — Strategy has halted Bitcoin acquisitions for the week ahead of its first-quarter earnings report, with scrutiny intensifying around its 11.5% preferred stock dividend. Michael Saylor confirmed the pause in a Sunday update, breaking the company’s recent pattern of regular weekly accumulation.

Immediate Details & Direct Quotes

The company last acquired 3,273 BTC for $255 million between April 20 and 26, funded through the sale of 1,451,601 MSTR Class A shares under its at-the-market equity program. According to a Sunday post on X by Michael Saylor, the company signaled “No buys this week,” marking a departure from his regular announcements flagging upcoming accumulation.

Yahoo Finance reported the purchase price averaged $77,906 per coin. Strategy’s total Bitcoin holdings have reached 818,334 BTC, which Saylor said were acquired for roughly $61.81 billion at an average of $75,537 per bitcoin. At current prices near $78,000, filings and market data place the position’s value at about $63.7 billion, implying an unrealized gain of roughly $1.9 billion.

According to the original report, Strategy added more than 34,000 BTC for $2.54 billion in a single week last month, marking one of its largest purchases on record. Across April, four acquisitions totaled well over $3 billion, with earlier deals funded through a mix of MSTR stock sales and issuances of STRC, its perpetual preferred security.

Market Context & Reaction

Attention has turned to Strategy’s upcoming earnings report, where analysts expect pressure from accounting treatment tied to Bitcoin. Yahoo Finance data shows Wall Street forecasts a loss of $18.98 per share for the quarter, compared with a $16.49 loss a year earlier, largely due to mark-to-market adjustments on its holdings.

Scrutiny has intensified around STRC, which offers an 11.5% dividend yield. Peter Schiff repeated his criticism of the structure on Sunday, arguing in a post on X that relying on Bitcoin appreciation above that yield does not resolve what he described as a “ponzi like structure.” Concerns over sustainability have also been raised by Joseph Parrish, who wrote on April 28 that current cash reserves may not cover two years of STRC dividend payments. Parrish warned that continued stock issuance could become necessary, increasing risk if Bitcoin fails to outperform expectations.

Despite the concerns, data from TipRanks shows a consensus “Strong Buy” rating on Strategy’s Nasdaq-listed shares, even as some investors weigh leverage, payout obligations, and dependence on equity funding.

Background & Historical Context

Strategy still has $26.47 billion in MSTR shares available under its existing issuance program, according to its latest filing, leaving room to continue funding Bitcoin purchases without securing new capital sources. The company’s Form 8-K filing with the SEC shows the recent 3,273 BTC acquisition was funded through the sale of MSTR Class A shares.

The pause comes at a critical juncture as Strategy prepares to report its first-quarter earnings. Analysts expect the company to face increased scrutiny regarding its Bitcoin-heavy balance sheet and the sustainability of its STRC dividend structure.

What This Means

The Bitcoin buying pause signals a potential shift in Strategy’s accumulation strategy as it navigates earnings season and growing investor criticism. With $26.47 billion in MSTR shares still available for issuance, the company maintains significant firepower to resume purchases if conditions warrant.

The STRC dividend debate highlights broader questions about sustainable yield in the crypto space, particularly for strategies that rely on asset appreciation to service ongoing payouts. Investors should monitor Strategy’s upcoming earnings report for clarity on dividend sustainability and future Bitcoin acquisition plans.

This is not financial advice. Conduct your own research before making investment decisions.

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