Key Takeaways
- JPMorgan projects MicroStrategy's Bitcoin buys may reach $30 billion in 2026.
- The firm has already added 145,834 BTC for ~$11 billion this year.
- Funding has shifted to 11.5%-yield STRC preferred shares, drawing criticism.
Back
JPMorgan projects Strategy Bitcoin buys could hit $30 billion
JPMorgan analysts on May 7 projected MicroStrategy's Bitcoin accumulation could reach $30 billion in 2026, after the firm acquired 145,834 BTC worth roughly $11 billion so far this year.
"The pace of those purchases... suggests that the company has a particular timeline in mind," one analyst report noted, highlighting that recent buying outpaced miner production by more than 2.5 times.
The projection comes after MicroStrategy's holdings swelled to 818,334 BTC. Most of the 2026 purchases, about 77,000 BTC, were funded by a new class of perpetual preferred stock (STRC) paying an 11.5% dividend, rather than common stock dilution.
The aggressive, debt-fueled strategy tightens Bitcoin's available supply but introduces significant risk. Critics like Peter Schiff label the STRC structure a "Ponzi," warning a sustained Bitcoin price decline could force a dividend suspension or a cascade of forced selling.
STRC Structure Draws Scrutiny
The shift toward STRC shares as the primary funding vehicle marks a pivot for the company. While it avoids diluting common shareholders, the perpetual stock carries a hefty 11.5% annual dividend yield, creating over $1.2 billion in yearly obligations based on current issuance. Gold advocate Peter Schiff has been a vocal critic, escalating his attacks by calling the structure unsustainable. He predicts CEO Michael Saylor would suspend STRC dividends before liquidating Bitcoin reserves to cover payments, a move that would "crash STRC."
A Brief Pause and Wall Street Concerns
MicroStrategy briefly paused its buying spree in late April ahead of its Q1 2026 earnings report on May 5. The company posted a GAAP loss of $3.41 per share, driven by mark-to-market accounting of its Bitcoin holdings, which saw a drawdown during the quarter. Despite the paper loss, the company added 89,600 BTC in Q1, its second-largest quarterly purchase ever. Investors are now watching to see if the buying pace projected by JPMorgan resumes, or if the firm prioritizes servicing its high-yield debt.
This article is for informational purposes only and does not constitute investment advice.
[1] JPMorgan says Strategy's bitcoin buying could reach $30 billion this year at current pace[2] MicroStrategy Pauses Bitcoin Buys Ahead of May 5 Q1 Earnings[3] Schiff Calls MicroStrategy a Pure Ponzi and Bitcoin Hybrid Pyramid Scheme[4] Strategy raises $82M for Bitcoin purchase amid geopolitical tensions[5] Strategy Just Gobbled Up 0.5% of the Bitcoin Supply in 90 Days. Here's What Could Happen Next.
