Strategy's latest BTC buy lowers holdings per share, sparking dilution fears

Strategy's (MSTR) recent Bitcoin purchase has paradoxically led to a decrease in its BTC holdings per share, raising concerns about the dilution of shareholder value, CryptoSlate reported. Last week, the company issued 1.7 million common shares worth $209 million to fund the acquisition. It used $100 million to purchase 1,587 BTC, retaining the remaining cash to bring its total holdings to $1.1 billion. The new share issuance caused the amount of BTC held per share to fall from 13% on June 1 to 12.5% on June 15. As a result, some critics argue that shareholder value has been diluted. Strategy has countered this claim, stating that the increase in its cash reserves, combined with the potential for its stock to rise alongside BTC's price, has actually increased real shareholder value. Others have pointed out the irrationality of issuing more stock to buy BTC while the company's shares trade at a discount, at 0.8 times its net asset value minus debt.