Breaking: Michael Saylor Fires Back At MSTR Dilution Claims After Bitcoin Buy

Strategy recently raised its capital once again with MSTR stock ATM sales while also buying Bitcoin. It led to concerns around MSTR’s dilution. However, Strategy’s Executive Chairman Michael Saylor has rebutted accusations that the latest capital raising negatively impacted MSTR shareholders.

Michael Saylor Says MSTR Stock Sale Was ‘Accretive’

The argument broke out after Bitcoin analyst Matthew R. Kratter posted on X that he believed Strategy’s metrics demonstrated that there was actually dilution following its capital raising last weekend.

The capital raise over the weekend diluted the MSTR stock shareholders, wrote Kratter. To justify his stance, he cited a drop in the company’s BTC Yield metric from June 1 to June 8.

In particular, Kratter pointed to an updated chart from Strategy that revealed that Bitcoin’s holdings stood at 843,706 BTC and ADSO’s outstanding shares rose to 384,180. He has stated that he believes the gain in shares is more worthwhile than a gain in Bitcoin per share in the short term.

For context, in the 8-K filing on Monday, June 8, the company revealed selling over 1.4 million MSTR shares worth a whopping $181 million. This was the main concern of market participants as Strategy executives also dumped $15 million in MSTR stock albeit for tax purposes. Moreover, the negative sentiment has persisted since the company had announced selling 32 BTC last week.

Michael Saylor directly responded on X and dismissed the dilution narrative by defending the transaction. He explained, “BTC Yield measures the increase in BTC per share, not total shareholder accretion.”

Saylor also spotlighted that Strategy boosted its USD holdings in the deal. “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,” he wrote.

The Recent Bitcoin Acquisition & STRC Dividend Saga

The criticism came soon after Strategy revealed it had bought 1,550 BTC for about $101 million. The average purchase price was $65,332 per BTC owing to a massive sell-off in the market last week.

Michael Saylor also disclosed that it has 845,256 BTC valued at approximately $51.9 billion at today’s market prices. The firm also stated that BTC Yield YTD is at 12.8% and BTC Gain YTD is 86,328 BTC.

Meanwhile, it’s worth noting that the $100 million USD additional reserve raised the company’s reserve balance to almost $1 billion USD. This could support in maintaining STRC dividends as the semi-monthly dividends proposal was approved on June 8.