Strategy Skips BTC Buys – What To Watch This Week

In Brief

• Strategy has paused its weekly BTC purchases ahead of its upcoming Q1 earnings report.
• The company remains the largest corporate BTC holder and maintains a long-term accumulation strategy.
• Other firms are still actively buying Bitcoin, showing ongoing institutional participation in the market.

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Strategy, formerly MicroStrategy, will skip its weekly Bitcoin purchase for the second time this year, while the company prepares for its Q1 earnings report.

Michael Saylor announced that Strategy will not be adding any coins to its BTC wallet in the week of May 4-10, as it has been doing on a weekly basis almost every week.

“No buys this week. Back to work next week,” the co-founder and Executive Chairman wrote on Twitter this Sunday.

Bitcoin purchase announcement. Source: Michael Saylor, Twitter — Source: Michael Saylor, Twitter

This is the second pause this year, meaning that Strategy rarely makes this decision. Still, there’s a key report coming out this week, which may indicate the overall trust in Strategy’s strategy.

Earnings Report Incoming

Strategy has significant Bitcoin holdings, buying 818,334 BTC between August 2020 and the time of writing. It has no plans to stop the purchases, and it’s already the largest Bitcoin treasury company. According to BitcoinTreasuries, the average price per coin the company holds is now $75,532. It also noted a 5% profit at this point in time.

Bitcoin treasury companies. Source: bitcointreasuries.net — Source: bitcointreasuries.net

However, this Tuesday, May 5, will see Strategy’s first-quarter earnings release. Therefore, the BTC buying pause is likely related to this event.

Based on available data, analysts expect this Q1 report to show revenue of $125.07 million as an average estimate, with the low-to-high estimates standing at $116 million – $134 million. The average estimate would be a 12.6% yearly increase from $111.07 million.

Companies Keep Buying BTC

Meanwhile, other companies continue announcing their ongoing BTC purchases. On May 4, the 9^th largest Bitcoin treasury company, Strive, said it added 444 BTC to the total of 15,000 coins. It made the purchase for $33.9 million at an average cost of $76,307 per BTC.

BTC investment. Source: Matt Cole, Twitter — Source: Matt Cole, Twitter

Based on the BitcoinTreasuries ranking, Strategy is followed by Twenty One Capital with 43,514 BTC, with Metaplanet nearby, holding 40,177 BTC.

At the lower end of the top 100 holders, we find Horizon Kinetics Holding Corp and Mac House, with 132 BTC and 125 BTC, respectively. In total, these top 100 companies hold 1,215,705 BTC combined.

At the time of writing (Monday, 15:00 UTC), BTC stands at $80,244, up 2% in a day and 3% in a week.

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