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Schiff Accuses MSTR of Share Dilution in Bitcoin Buy

MicroStrategy expands Bitcoin treasury with $101M purchase, prompting dilution criticism from Peter Schiff.

  • Strategy Inc. purchased 1,550 Bitcoin for $101.3 million, increasing its total holdings to 845,256 BTC.
  • The company sold 1.41 million shares for $181.0 million to restore its USD reserves after a dividend payment.
  • Critic Peter Schiff accused the firm of diluting common stockholders to fund the Bitcoin acquisition.

In early June, Strategy Inc. (MSTR) aggressively expanded its Bitcoin treasury by purchasing 1,550 coins for $101.3 million, a move nearly 50 times larger than its sale of 32 BTC the previous week. The acquisition, executed at an average price of $65,332 per coin, was funded through an at-the-market (ATM) share offering program.

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Consequently, the company’s total Bitcoin holdings now stand at 845,256 coins, acquired at an all-in average cost of $75,680 each. However, Bitcoin’s price has since dipped below that weekly acquisition average, trading near $63,594 at the time of writing.

Meanwhile, Strategy also sold 1,409,600 shares of MSTR for net proceeds of $181.0 million. This sale restored the firm’s US dollar reserve to $1.0 billion, replenishing funds used for a preferred-stock dividend payment.

Bitcoin critic Peter Schiff, however, sharply criticized the financing method. He accused Strategy of omitting that the share issuance was dilutive to common stockholders, declaring “the game is over” in a post on X. His criticism focused on the trade-off between increasing Bitcoin holdings and diluting existing shareholder equity.

In related news, Strive (ASST) announced it purchased 32 Bitcoin on the same day, matching the exact number Strategy had sold the prior week. Retail sentiment around MSTR remained ‘extremely bearish’ on Stocktwits despite the stock’s price rising over 5% in early trading.

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