MicroStrategy Pauses Bitcoin Buys, Shifts to STRC Preferred Stock

MicroStrategy halted Bitcoin purchases this week ahead of its May 5, 2026 first-quarter earnings report and said it will shift funding to its STRC preferred-share program rather than raise capital by selling common stock. The company ended a near-weekly buying cadence that had defined its 2026 accumulation strategy.

The pause follows a buying streak that included a 13-week run that ended in late March. MicroStrategy added roughly 89,600 BTC for about $5.5 billion in the quarter, its second-largest quarterly purchase by volume. Bitcoin’s price fell more than 20% over the same period.

The company reported total holdings of 818,334 BTC valued at $64.44 billion and an average cost basis of $75,532 per coin, a reported unrealized gain of 4.23% on that basis. MicroStrategy’s Q1 GAAP report showed a $14.5 billion unrealized loss tied to mark-to-market accounting, a factor analysts expect will produce a GAAP loss for the quarter. Revenue is expected to be near $120 million and consensus EPS is around negative $3.41.

MicroStrategy has leaned on its STRC preferred-share program as an alternative to at-the-market common stock offerings. STRC shares pay an 11.5% dividend and have recently traded below par. Company executives describe the program as a way to raise capital with less dilution to common stockholders.

Critics have raised concerns that the preferred structure carries dilution and refinancing risk if Bitcoin’s price falls further. Financial commentator Peter Schiff tweeted that STRC is the “most obvious Ponzi.” MicroStrategy CEO Phong Le rejected that characterization, calling the program “transparent” and “very clear what we’re doing.”

The company’s earnings call is scheduled for May 5 at 5 p.m. ET and will stream on Zoom, X and YouTube. Investors will use the call to assess whether MicroStrategy resumes direct Bitcoin purchases after the earnings release or continues to prioritize preferred issuance for funding. The quarter’s large BTC acquisitions and the price decline have increased attention on how the company accounts for its Bitcoin position and finances future purchases.