Strategy disclosed a $181 million share sale and $101 million Bitcoin purchase this week, prompting CEO Michael Saylor to defend the transactions against dilution accusations. The company filed an 8-K with securities regulators on June 8 revealing the sale of over 1.4 million MSTR shares, then announced Monday it had purchased Bitcoin at an average price of $65,332 per coin. Bitcoin analyst Matthew Kratter argued on X that the capital raise diluted shareholders by increasing the share count faster than Bitcoin holdings. Saylor countered that the transaction added both 1,550 Bitcoin and $100 million in cash reserves, making it accretive when both assets are considered. Strategy's cash reserves now stand close to $1 billion, a figure central to Saylor's defense as the company sustains semi-monthly preferred stock dividends approved June 8.
Matthew Kratter Challenges Strategy's BTC Yield Metric
Matthew Kratter initiated the dispute on X, arguing that Strategy's own data showed shareholders were worse off after the company raised fresh capital last weekend. His case rested on BTC Yield, a metric that tracks the change in Bitcoin held per outstanding share. Kratter pointed to an updated company chart showing Bitcoin holdings at 843,706 BTC while the number of diluted shares outstanding climbed to 384,180, and argued that the share count grew faster than the Bitcoin count.
Strategy Files 8-K Disclosing $181 Million Share Sale
The dispute traces back to an 8-K filing Strategy submitted to securities regulators on June 8, disclosing the sale of more than 1.4 million MSTR shares for approximately $181 million. The capital raise came the same week Strategy executives sold about $15 million worth of their own shares, a move the company attributed to tax obligations. Reports also indicate Strategy had sold 32 Bitcoin the previous week.
Saylor Defends Transaction as Accretive With Cash Included
Saylor dismissed Kratter's claim directly. BTC Yield, he wrote on X, measures Bitcoin per share and does not account for cash or any other asset the company holds. The transaction in question added both 1,550 Bitcoin and $100 million in USD reserves to Strategy's balance sheet. When both are factored in, Saylor said, the deal was accretive to shareholders, not dilutive.
Strategy Holds 845,256 Bitcoin With $1 Billion Cash Reserves
Strategy now holds 845,256 Bitcoin, valued at nearly $52 billion at current prices. BTC Yield for the year to date stands at 12.8%, with BTC Gain YTD at 86,328 Bitcoin. The $100 million raised in the latest capital round pushed the company's dollar reserves to just under $1 billion. Strategy shareholders approved semi-monthly dividends on its STRC preferred stock on June 8.
FAQ
What did Matthew Kratter accuse Strategy of doing?
Matthew Kratter argued on X that Strategy's share sale diluted shareholders by increasing the share count faster than Bitcoin holdings, based on the company's BTC Yield metric showing 843,706 BTC and 384,180 diluted shares outstanding.
How did Saylor respond to the dilution claim?
Saylor stated on X that BTC Yield measures Bitcoin per share only and does not account for cash reserves. He said the transaction added both 1,550 Bitcoin and $100 million in cash to Strategy's balance sheet, making it accretive when both assets are included.
