Michael Saylor’s latest purchase adds 1,587 BTC but reignites shareholder dilution debate
Strategy announced on June 15 that it purchased 1,587 BTC at an average price of $63,024 per token, spending approximately $100 million and bringing its total Bitcoin holdings to 846,842 BTC. The company raised the capital by selling 1.7 million MSTR shares for $209 million and allocated an additional $100 million to cash reserves.
The purchase represents Strategy’s continued expansion as the world’s largest corporate holder of Bitcoin, now controlling 4% of the 21 million fixed supply cap. Yet the transaction has intensified a long-running debate between Michael Saylor, Strategy’s Chairman, and critics who argue that equity issuance dilutes common shareholders’ Bitcoin ownership per share.
Strategy’s BTC Yield metric, which measures Bitcoin holdings per diluted share, declined to 12.5% following the announcement. The metric stood at 13.0% on June 1 and 12.8% on June 8, showing a consistent downward trend despite absolute Bitcoin holdings increasing from 843,706 BTC on June 1.
Matthew Kratter, a Bitcoin advocate and Strategy critic, attacked the transaction on social media. “Congratulations to Saylor and Strategy for diluting MSTR shareholders once again over the weekend. Bitcoin per share dropped yet again, and the Saylor simps are too st#pid to understand what’s happening to them,” Kratter wrote.
Quinn Thompson, Chief Investment Officer at Lekker Capital, offered a different critique. “They’re selling MSTR shares that are worth 80 cents on the dollar to buy $1 bills,” Thompson said, suggesting that Strategy trades at a discount to its net asset value and that equity issuance at depressed valuations is economically irrational.
Saylor defends the strategy using a framework called common equity Bitcoin exposure (CEBE), which accounts for debt, preferred stock, and cash reserves alongside Bitcoin holdings. Under this lens, the transaction may appear accretive rather than dilutive.
Adam Livingston, an independent market analyst, supported Saylor’s framework. Before the transaction, common equity Bitcoin exposure was 145,142 satoshis per share. After the purchase, it rose to 145,319 satoshis per share, representing an addition of 3,146 BTC-equivalent to the common residual. “BTC-only looked dilutive. BTC plus cash was accretive,” Livingston said.
The conflict reflects deeper disagreements about Strategy’s capital structure. Dylan LeClair, Director of Bitcoin Strategy at Metaplanet, has argued that issuing common stock can strengthen the balance sheet by increasing dollar net asset value per share and reducing leverage. Nic Puckrin, CEO of Coin Bureau, has suggested that Strategy faces constrained options if common stock trades below the value of its Bitcoin holdings.
Strategy finances Bitcoin purchases through an at-the-market equity program offering $25.75 billion in MSTR shares, an expanded capital markets platform with $21 billion in common stock available, $21 billion in STRC preferred stock, and $2.1 billion in STRK preferred stock. The company has negative cash flow and relies on capital markets to service debt and preferred equity obligations.
Bitcoin’s recent decline from recent highs has compressed Strategy’s trading premium to net asset value, amplifying the debate. Thompson noted that MSTR common stock trades at 0.8 times net asset value per share.
What’s Next
Strategy’s capital structure strategy hinges on whether Bitcoin appreciation outpaces shareholder dilution from ongoing equity issuance. The company has not disclosed whether the $100 million cash reserve allocation represents a temporary tactical move or a shift in permanent policy.
