Strategy’s $1 Billion Cash Target Becomes Centerpiece of Shareholder Value Debate
Michael Saylor has mounted a direct defense of Strategy’s latest capital raise and Bitcoin purchase, arguing that shareholders were not diluted when the company’s cash reserves are factored into total shareholder value calculations.
The dispute centers on how to measure shareholder accretion. Bitcoin analyst Matthew Kratter contended on X that Strategy’s own data showed shareholders were worse off after the company raised capital, using BTC Yield as his metric. BTC Yield tracks Bitcoin held per outstanding share.
Saylor countered that BTC Yield is incomplete. “BTC Yield measures the increase in BTC per share, not total shareholder accretion,” Saylor posted on X. “Last week Strategy added 1,550 BTC of BTC and $100 million of USD Reserve. When both assets are included, the transaction was accretive to MSTR shareholders.”
On June 8, Strategy filed an 8-K disclosing the sale of 1.4 million shares for approximately $181 million. The same day, shareholders approved semi-monthly dividends on STRC preferred stock. Strategy’s cash reserves are now approaching $1 billion, a figure that has become central to Saylor’s argument that the equity issuance strengthened the company’s balance sheet.
The timing of the capital raise raised questions among investors. During the week of June 8, Strategy executives sold approximately $15 million worth of shares, attributed to tax obligations. The previous week, Strategy had sold 32 Bitcoin, adding to concerns about the company’s accumulation strategy.
According to data cited by Kratter, Strategy now holds 845,256 BTC across 384,180 diluted shares outstanding. At current prices, those holdings are valued at $52 billion. Year to date, the company has gained 86,328 BTC, representing a 12.8% BTC Yield.
Earlier in the week, Strategy announced a $101 million Bitcoin purchase at an average price of $65,332 per coin, adding 1,550 BTC to its reserves. Saylor’s argument hinges on treating the $100 million cash component of the capital raise as a permanent asset alongside Bitcoin holdings when calculating shareholder value.
Sustaining the newly approved preferred stock dividends requires reliable access to liquid reserves, making the cash position material to the company’s ability to service its obligations to preferred shareholders.
Kratter’s full response to Saylor’s rebuttal was not disclosed in available materials.
