Strategy, which is the largest public Bitcoin investor in the world, has taken a short break from cryptocurrency purchases to prepare for its quarterly earnings report scheduled on Tuesday.
Michael Saylor, executive chairman of the Board of Directors announced Sunday. “No buys this week” In a post On X, he regularly signals his planned purchases.
The Tysons Corner-based Virginia company purchased 3,273 Bitcoins for $255 Million between April 20 to 26, according A filing 8-K was made with the US Securities and Exchange Commission (SEC) on April 27.
SourceMichael Saylor at X
Strategy has now purchased 818,334 BTC for an average of $77.906 per coin. This brings the cost basis up to $75,537. According to CoinGecko, the largest crypto market cap traded at $78,787.08 on Sunday. data.
In April, the price of BTC rose 12% due to purchases by Strategy and inflows from exchange-traded funds that track US spot rates.
Related: Bitcoin preps highest weekly close since January as BTC price nears $79K
STRC dividend expected to result in a quarterly loss
Wall Street analysts The management is expected to mark Bitcoin to market, which will result in a loss per share of approximately $18.98. Yahoo Finance’s data shows that the loss in the previous period was $16.49.
Saylor will be speaking at the Consensus Industry Conference in Miami Beach on Wednesday.
Stock watchers are worried about Strategy’s STRC perpetual preferred security because the asset provides an 11,5% dividend yield.
Peter Schiff is the chief economist at Euro Pacific Asset Management and global strategist. He has called Strategy an idiom before. “Ponzi scheme,” On Sunday, he repeated the allegation and questioned the ability of the company to maintain the dividend.
“Gambling that Bitcoin will rise by more than 11.5% a year does not change the Ponzi like structure of STRC,” In a recent post, he made the following statement:
SourcePeter Schiff on X
Joseph Parrish from Seeking Alpha blog expressed his concern in an article dated April 28, 2009. post It is claimed that STRC’s current reserves of cash are not sufficient to pay for STRC dividends over the next two years. This will force Strategy to continue selling its common stock, and increase investor risk in case Bitcoin performs poorly.
The stock of the MSTR company, traded under that ticker, is rated as an “a”. “Hold,” The analyst cited increased leverage and uncertain catalysts as well as challenging risk management in spite of a falling stock price. He is at odds with many other analysts according to financial engines TipRanksThis shows that there is a consensus among a “Strong Buy” Rating on Strategy Nasdaq listed shares.
Related: ‘Historical average’ could push Bitcoin bottom at $57K level: Analyst
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Source: cointelegraph.com
