Strategy Inc. Signals Renewed Bitcoin Purchases Amidst Persistent Paper Losses

Strategy Inc. to resume weekly Bitcoin purchases despite a $6.79B paper loss. The firm's high-yield preferred shares attract retail investors, while critics warn of a valuation disconnect.

Michael Saylor, Chairman of Strategy Inc., appears poised to resume the company's aggressive Bitcoin acquisition strategy. A succinct social media post stating "Back to Work" on Sunday is widely interpreted as ending a recent pause in weekly buying, despite the firm carrying a substantial unrealized loss on its existing cryptocurrency holdings.

The Scale of Unrealized Losses

The software corporation currently holds 762,099 Bitcoin on its balance sheet. With an average purchase price of $75,694 per token and a current market price near $67,450, this represents a significant paper loss of approximately $6.79 billion. However, this figure shows a slight improvement; at the end of March, the unrealized deficit stood at $7.4 billion. Saylor's latest communication suggests the company will soon restart its program of regular weekly purchases.

Retail Investors Flock to Preferred Shares

Beyond its core crypto holdings, Strategy's financing approach is drawing attention. The company's management has confirmed an annualized dividend yield of 11.5% for April 2026 on its special preferred shares (ticker: STRC). A notable detail is that this marks the first month since their introduction in July 2025 where the yield has not been adjusted upward.

Trading close to their par value of $100, these securities have demonstrated relative price stability. This lower volatility compared to the common stock has proven attractive to retail investors, who now hold roughly 80% of the outstanding preferred shares, thereby securing the double-digit yield.

Financing and Valuation Concerns

To sustain this structure, Strategy relies on an extensive capital-raising program. Its ambitious financing plan aims to secure $42 billion over a three-year period. Current debt servicing and dividend payments are supported by a cash position of $2.25 billion.

This strategy faces skepticism from critics like asset manager Peter Schiff. He contends that recent gains in the company's share price are increasingly driven by speculation and have become disconnected from the actual performance of Bitcoin itself. This dynamic has led to a growing premium of the stock price over the pure value of its underlying cryptocurrency holdings.

Consequently, the gap between the net asset value of Strategy's Bitcoin reserves and its total market capitalization persists. By signaling a return to purchase mode, the company is continuing its aggressive expansion path, all while maintaining its parallel obligation to meet the substantial dividend payments tied to its preferred share program.