Michael Saylor announced that his firm, MicroStrategy, will refrain from making any Bitcoin (BTC) purchases this week. This strategic pause comes just days before the company is slated to report its first-quarter earnings for 2026 on May 5. The decision to halt buying coincides with MicroStrategy’s first notable quarterly Bitcoin downturn of the current cycle, prompting a shift in funding mechanisms towards preferred equity instead of common-stock issuance.
This break disrupts what had been a consistent weekly buying pattern for MicroStrategy, which had been accumulating Bitcoin regularly throughout 2026. Following a sustained buying streak that lasted 13 weeks, the firm previously halted purchasing activities in late March.
Currently, MicroStrategy holds approximately 818,334 BTC, valued at about $64.44 billion, with an average acquisition cost of $75,532 per coin, resulting in a modest unrealized gain of 4.23%. While the first quarter of 2026 has seen aggressive Bitcoin accumulation, with the company adding roughly 89,600 BTC for $5.5 billion, this growth occurred amid a general Bitcoin market decline of more than 20% during the same timeframe.
As analysts turn their attention to the upcoming earnings report, industry expectations forecast Q1 revenue to be around $120 million, with a generally accepted accounting principles (GAAP) loss primarily attributed to the accounting of Bitcoin’s mark-to-market values. According to Zacks Investment Research, the consensus estimate for earnings per share (EPS) sits at a negative $3.41, in stark contrast to the negative $16.49 EPS reported during the same period last year.
Investor interest will also center on MicroStrategy’s preferred share program, known as the Stretch (STRC), which has become a crucial component of the company’s funding strategy after it moved away from common-stock market offers. The STRC shares offer an 11.5% dividend, though they have recently been trading below par. Critics, including notable economist Peter Schiff, express concerns that this structure might introduce risks associated with dilution and refinancing, particularly if Bitcoin prices continue to decline.
As the May 5 earnings call approaches, set for 5 p.m. ET and broadcast on platforms like Zoom, X, and YouTube, stakeholders will closely monitor whether MicroStrategy resumes its Bitcoin buying next week or embraces a more yield-focused approach to capital allocation moving forward.
