Michael Saylor, Executive Chairman of Strategy, has firmly rejected allegations that the company’s recent capital raise through MicroStrategy (MSTR) stock sales diluted shareholder value. The controversy surfaced after Strategy sold over 1.4 million MSTR shares and simultaneously acquired a substantial amount of Bitcoin, which some market observers argued had weakened investors’ stakes. Saylor countered this view by emphasizing the overall accretion to shareholders from the combined increase in Bitcoin holdings and cash reserves.
The debate intensified following comments from Bitcoin analyst Matthew R. Kratter, who used Strategy’s own data to argue that the Bitcoin per share metric—known as BTC Yield—had declined after the share sale, signaling dilution. Kratter pointed to a company disclosure showing Bitcoin holdings of 843,706 BTC alongside a rise in outstanding ADSOs (American Depositary Shares Outstanding) to 384,180, interpreting this as a short-term loss in value from issuing more shares than the Bitcoin gained per share.
However, Saylor clarified that BTC Yield, which measures Bitcoin per share, is not the only factor to assess shareholder benefits. He highlighted that Strategy also increased its U.S. dollar reserve by $100 million alongside adding 1,550 BTC valued at around $101 million, bringing total Bitcoin holdings to approximately 845,256 BTC. According to Saylor, factoring in both Bitcoin and cash acquisitions makes the transaction accretive rather than dilutive.
The capital raise was part of Strategy’s broader plan to strengthen its financial position amid market volatility. The company sold the shares at-the-market, raising roughly $181 million, while some executives also sold stock for tax reasons. Additionally, Strategy purchased Bitcoin at an average price near $65,332 per BTC during a recent market downturn, expanding its crypto treasury to an estimated $51.9 billion at current prices.
Alongside these moves, Strategy raised its cash reserves close to $1 billion, reinforcing its ability to sustain semi-monthly dividends through its subsidiary STRC. The dividend proposal was approved shortly after the stock sale, signaling management’s commitment to returning value to shareholders despite concerns over issuance and Bitcoin market swings.