Michael Saylor has pushed back against dilution concerns after Strategy sold approximately $181 million worth of MSTR shares and used part of the proceeds to expand both its Bitcoin holdings and cash reserves.
Summary
- Michael Saylor rejected dilution claims tied to Strategy’s $181M MSTR share sale.
- Strategy added 1,550 BTC and increased cash reserves by $100 million.
- Fortune warned about rising obligations and risks if Bitcoin falls further.
According to comments posted by Strategy Executive Chairman Michael Saylor on X, criticism surrounding the company’s latest capital raise misunderstands how shareholder value should be measured.
Saylor’s response came after Bitcoin analyst Matthew R. Kratter argued that recent share issuance diluted existing shareholders and pointed to a decline in Strategy’s BTC Yield metric between June 1 and June 8.
Data published by Strategy showed the company held 843,706 BTC while its assumed diluted shares outstanding increased to 384,180 during the period. Referring to those figures, Kratter said on X that the increase in shares outweighed the short-term benefit of additional Bitcoin per share.
Fresh scrutiny followed Strategy’s June 8 filing, which disclosed the sale of more than 1.4 million MSTR shares for roughly $181 million. Market participants also noted that company executives sold around $15 million worth of MSTR stock for tax-related purposes, while sentiment had already been pressured by Strategy’s disclosure of its first Bitcoin sale in more than four years at the end of May.
Saylor disputed the dilution argument by stating that BTC Yield measures growth in Bitcoin per share rather than total shareholder accretion. In his response, he said Strategy added both Bitcoin and cash during the transaction, making the outcome positive for shareholders when both assets are considered.
“Last week Strategy added ₿1,550 of BTC and $100 million of USD Reserve. When both assets are included, the transaction was accretive to MSTR shareholders.”
Strategy points to cash reserves alongside Bitcoin growth
Figures released by the company show Strategy acquired 1,550 BTC for approximately $101.3 million between June 1 and June 7. The purchase was completed at an average price of $65,332 per Bitcoin during a period of heavy market volatility.
Company disclosures indicate Strategy now holds 845,256 BTC, which Saylor said are valued at roughly $51.9 billion based on current market prices. The company also reported a year-to-date BTC Yield of 12.8% and a BTC Gain of 86,328 BTC.
At the same time, the latest fundraising increased Strategy’s dollar reserves by $100 million, lifting total cash reserves to about $1 billion. Those reserves have attracted additional attention following shareholder approval of a proposal to change STRC preferred stock dividend payments from a monthly schedule to semi-monthly distributions beginning this month.
Rising obligations remain a focus for analysts
A separate analysis published by Fortune has highlighted concerns about Strategy’s growing use of preferred stock and Bitcoin-backed financing. According to the publication, the company’s combined debt and preferred stock obligations have increased from approximately $6.9 billion in early 2025 to around $21.8 billion, with preferred stock issuances accounting for much of the increase.
Fortune also estimated that Strategy’s stock continues to trade roughly 31% above its net asset value and warned that the premium could come under pressure if Bitcoin prices fall or investor concerns about the company’s capital structure intensify.
Under a scenario modeled by Fortune in which Bitcoin (BTC) declines to $50,000, the company’s net asset value could fall to about $23 billion while liabilities remain unchanged.
Attention has also remained on Strategy’s funding flexibility after the company disclosed the sale of 32 BTC for about $2.5 million in late May, its first reported Bitcoin sale since December 2022.
In a previous research covered by crypto.news, JPMorgan described the transaction as largely symbolic and said it appeared intended to demonstrate flexibility toward preferred shareholders, while cautioning that future dividend commitments could raise questions if cash reserves are eventually depleted.
