This morning, Strategy founder Michael Saylor announced more bitcoin (BTC) purchases funded from direct dilution of his MSTR shareholders.
Despite MSTR’s underperformance relative to BTC, Saylor has refused to reinstate the July 31 ban on common share dilution.
On July 31, 2025, Strategy provided clear guidance to its common shareholders: “We will not issue MSTR below 2.5x mNAV except to pay interest and dividends.”
Just two weeks later, on August 18, however, the company revised its promise to dilute MSTR “when otherwise deemed advantageous to the company.”
Strategy and Saylor have taken full advantage of that revoked guidance in the past six weeks. Specifically, the company has diluted MSTR common shareholders by 3,278,660 shares in order to spend $1,132,700,000 buying about 10,010 BTC.
Although Strategy is a BTC treasury company valued based on its ability to accrete BTC for shareholders, those dilutive purchases haven’t helped its stock outperform this benchmark.
Since its $363.60 closing price on August 18, MSTR has declined more than 10% as of publication time.
Over the same time period, BTC has only declined 2%.
In other words, MSTR underperformed BTC by an embarrassing 800 basis points since it reintroduced its dilutive, at-the-market (ATM) offerings.
- From August 18-24, Strategy diluted MSTR by 875,301 shares for $309.9 million in net proceeds.
- From August 26-September 1, MSTR diluted by 1,237,000 shares for $425.3 million in net proceeds.
- During September 2-7, Strategy diluted MSTR with another 591,606 shares for $200.5 million in net proceeds.
- From September 8-21, the company diluted MSTR by 227,401 shares for $80.6 million in net proceeds.
- Most recently, the company disclosed 347,352 shares for $116.4 million in net proceeds from September 22-28.
Almost all of those proceeds went to buying BTC. Including the above MSTR dilution plus other fundraises such as preferred share sales, the company bought $356.9 million worth of BTC from August 18-24, $449.3 million from August 26-September 1, $217.4 million from September 2-7, $159.9 million from September 8-21, and $22.1 million from September 22-28.
Read more: Michael Saylor continues to dilute MSTR after modifying promise
MSTR dilution paid for 94% of BTC purchases since August 18
On August 18, Strategy held 629,376 BTC. Today, it holds 640,031. MSTR dilution paid for most of that.
MSTR dilution funded $1,132,700,000 or 94% of the company’s total $1,205,600,000 worth of BTC purchases since August 18.
All of these sales were within the 1-2.5x multiple-to-Net Asset (mNAV) trading range for MSTR that Strategy’s July 31 promise explicitly forbade until the company abandoned that promise on August 18.
Indeed, MSTR has hasn’t traded outside of a 1-2.5x mNAV range since December 2024.
Interestingly, the company’s most recent, September 22-28 fundraise doesn’t seem to be fully expended on BTC purchases. Once these purchases are finished, if the company plans to buy more, this ratio could change slightly.
Unlike all of the prior fundraises where nearly the full amount of proceeds went to buying BTC, the company has only spent 17.2% of its $128.1 in net proceeds from September 22-28 buying BTC.
Of course, the company has quarterly dividend obligations to preferred shareholders, so it might not have enough cash to buy any more BTC. If so, that would leave the above 94% figure unchanged.
For just two weeks in August, MSTR shareholders were protected from the relentless dilution of Strategy leadership.
Since the company reintroduced MSTR dilution, its common share count has ballooned 1.2% while underperforming its BTC benchmark by 800 basis points.
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Source: https://protos.com/94-of-strategys-bitcoin-buys-since-august-were-from-diluting-mstr/