- Michael Saylor and his company Strategy (formerly MicroStrategy) diluted shareholders by $735.2 million after promising not to do so.
- The company changed its guidance to allow dilution between a multiple-to-net asset value (mNAV) of 1x to 2.5x.
- $425.3 million in MSTR shares were diluted as of September 1, followed by another $309.9 million last week.
- The dilution occurred while the company’s mNAV stayed inside the protected range promised to shareholders.
- Strategy continues to focus on holding Bitcoin and creating BTC-related financial products, with $8.2 billion in debt outstanding.
Strategy, formerly known as MicroStrategy, has diluted its common shareholders by $735.2 million despite an earlier promise by its executive chairman, Michael Saylor, that such dilution would not occur. The decision comes just weeks after Saylor assured investors that new share issuances would be restricted while the company’s multiple-to-net asset value (mNAV) was between 1x and 2.5x, except for servicing interest or dividend payments.
On July 31, 2025, Saylor and other executives held the company’s Q2 earnings presentation where they made the commitment to investors. However, on August 18, the company released an updated presentation that removed this assurance, formally revoking the guidance.
Regulatory filings show that as of September 1, Strategy had diluted $425.3 million of its MSTR shares within the previously protected mNAV range. An additional $309.9 million in dilution was executed the week prior, also within the 1x to 2.5x mNAV range. Presently, the company’s basic mNAV stands at 1.38x, and its enterprise value mNAV is 1.59x.
For several weeks, the MSTR share price has remained inside the range that Saylor and his team originally said would be safeguarded against further dilution. These actions represent a reversal from prior company guidance.
Unlike typical public companies, Strategy is mainly valued by its investors for its large bitcoin holdings and its ability to create and sell new products linked to cryptocurrency. Saylor has stated he is “building out the yield curve for BTC credit” by introducing preferred shares such as STRK, STRF, STRD, and STRC.
The company currently holds $8.2 billion in notional debt, operates a sizable options chain, and is included in global investment funds that track the MSTR stock. For more details, readers can refer to the company’s recent SEC filings and official company website.
Further information is available through resources such as SaylorTracker and detailed SEC disclosures.
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