This morning, Technique founder Michael Saylor introduced extra bitcoin (BTC) purchases funded from direct dilution of his MSTR shareholders.
Regardless of MSTR’s underperformance relative to BTC, Saylor has refused to reinstate the July 31 ban on frequent share dilution.
On July 31, 2025, Technique offered clear steering to its frequent shareholders: “We will not issue MSTR below 2.5x mNAV except to pay interest and dividends.”
Simply two weeks later, on August 18, nonetheless, the corporate revised its promise to dilute MSTR “when otherwise deemed advantageous to the company.”
Technique and Saylor have taken full benefit of that revoked steering prior to now six weeks. Particularly, the corporate has diluted MSTR frequent shareholders by 3,278,660 shares in an effort to spend $1,132,700,000 shopping for about 10,010 BTC.
Though Technique is a BTC treasury firm valued based mostly on its capacity to accrete BTC for shareholders, these dilutive purchases haven’t helped its inventory outperform this benchmark.
Since its $363.60 closing worth on August 18, MSTR has declined greater than 10% as of publication time.
Over the identical time interval, BTC has solely declined 2%.
In different phrases, MSTR underperformed BTC by an embarrassing 800 foundation factors because it reintroduced its dilutive, at-the-market (ATM) choices.
From August 18-24, Technique diluted MSTR by 875,301 shares for $309.9 million in web proceeds.
From August 26-September 1, MSTR diluted by 1,237,000 shares for $425.3 million in web proceeds.
Throughout September 2-7, Technique diluted MSTR with one other 591,606 shares for $200.5 million in web proceeds.
From September 8-21, the corporate diluted MSTR by 227,401 shares for $80.6 million in web proceeds.
Most just lately, the corporate disclosed 347,352 shares for $116.4 million in web proceeds from September 22-28.
Virtually all of these proceeds went to purchasing BTC. Together with the above MSTR dilution plus different fundraises comparable to most popular share gross sales, the corporate purchased $356.9 million price 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.
MSTR dilution paid for 94% of BTC purchases since August 18
On August 18, Technique held 629,376 BTC. In the present day, it holds 640,031. MSTR dilution paid for many of that.
MSTR dilution funded $1,132,700,000 or 94% of the corporate’s whole $1,205,600,000 price of BTC purchases since August 18.
All of those gross sales have been throughout the 1-2.5x multiple-to-Internet Asset (mNAV) buying and selling vary for MSTR that Technique’s July 31 promise explicitly forbade till the corporate deserted that promise on August 18.
Certainly, MSTR has hasn’t traded outdoors of a 1-2.5x mNAV vary since December 2024.
So not solely did $MSTR purchase simply $51M of Bitcoin, on account of lack of demand for the popular ATM’s, nevertheless it additionally appears like Saylor is decreasing the two.5x mNAV ground “when otherwise deemed advantageous” to the Firm. pic.twitter.com/Scfd4VMYiA
— James Chanos (@RealJimChanos) August 18, 2025
Curiously, the corporate’s most up-to-date, September 22-28 fundraise doesn’t appear to be totally expended on BTC purchases. As soon as these purchases are completed, if the corporate plans to purchase extra, this ratio may change barely.
In contrast to all the prior fundraises the place practically the total quantity of proceeds went to purchasing BTC, the corporate has solely spent 17.2% of its $128.1 in web proceeds from September 22-28 shopping for BTC.
In fact, the corporate has quarterly dividend obligations to most popular shareholders, so it won’t have sufficient money to purchase any extra BTC. If that’s the case, that would depart the above 94% determine unchanged.
For simply two weeks in August, MSTR shareholders have been protected against the relentless dilution of Technique management.
Because the firm reintroduced MSTR dilution, its frequent share rely has ballooned 1.2% whereas underperforming its BTC benchmark by 800 foundation factors.
