- MicroStrategy issued more than 3.27 million new shares to raise $1.13 billion, mostly to purchase Bitcoin.
- The company’s stock dropped over 10% since August 18, while Bitcoin’s value fell just 2% in the same period.
- Approximately 94% of MicroStrategy’s recent Bitcoin acquisitions since August 18 were funded through shareholder dilution.
- The company changed its previous guidance and began issuing shares at levels it had recently promised not to.
- The increase in shares failed to help MicroStrategy outperform Bitcoin; its stock underperformed by 800 basis points since resuming dilution.
MicroStrategy has increased its Bitcoin holdings over the past six weeks by issuing new common shares and using the proceeds to buy more cryptocurrency. The company diluted shareholders by over 3.27 million shares, raising approximately $1.13 billion largely for Bitcoin purchases.
Recently, MicroStrategy founder Michael Saylor announced continued Bitcoin acquisitions, funded mostly through share dilution. After reversing a July 31 pledge not to issue shares below 2.5 times the company’s net asset value—except to pay interest or dividends—the company resumed issuing shares on August 18, stating it would do so “when otherwise deemed advantageous to the company.”
Company disclosures show most new funds raised since August went directly toward Bitcoin. MicroStrategy purchased 10,010 Bitcoin since August 18, using 94% of the $1.2 billion spent on these purchases from share sales. The share dilution has increased the company’s common share count by 1.2%.
According to filings, from August 18–24, the firm raised $309.9 million by issuing 875,301 shares. Between August 26–September 1, another 1,237,000 shares generated $425.3 million. In the first week of September, 591,606 shares brought in $200.5 million, followed by 227,401 shares for $80.6 million from September 8–21, and 347,352 shares for $116.4 million from September 22–28.
As of August 18, MicroStrategy reported holding 629,376 Bitcoin. The latest disclosures show the firm holds 640,031 Bitcoin as of September 28, with most recent purchases funded by dilution. Despite significant investment, the company’s stock lagged behind Bitcoin, underperforming by about 800 basis points since reinstating its at-the-market offerings.
The majority of sales since August 18 occurred within a 1-2.5x multiple-to-net asset value (mNAV) trading range, a level that had been explicitly excluded from share issuance by a previous company promise until the guidance changed.
Some recent funds have not yet been deployed fully into Bitcoin, possibly due to quarterly dividend obligations. According to statements, “For just two weeks in August, MSTR shareholders were protected from the relentless dilution of Strategy leadership.” Since that period, shareholder dilution has resumed as the company continues its Bitcoin acquisition strategy.
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