Strategy Inc. Pauses Bitcoin Buying Program Ahead of Earnings Report

Strategy Inc., a company once known for its software business, has been quietly accumulating bitcoin through its buying program. However, the firm has paused its purchases ahead of its upcoming quarterly earnings report, marking only the second break in what has become a steady accumulation program.

The pause in buying is seen as a standard pre-earnings caution move by analysts, who expect revenue growth alongside another loss tied to bitcoin accounting and financing costs. Strategy holds about 818,334 bitcoin, or close to 3.9% of total supply, making it the largest public bitcoin treasury.

The company's stock has surged over 10% in two days, driven by recent price jumps in bitcoin and enthusiasm for its new STRC instrument. STRC is a bitcoin-backed preferred stock that offers a variable dividend near 11.5% annualized and has drawn scrutiny from analysts who see asymmetry in its design.