Strategy buys BTC, but BTC per share falls amid dilution now

MSTR issues shares to fund 2% Bitcoin purchase—holdings up but BTC-per-share falls; Saylor rebuffs critics

  • Strategy increased its outstanding diluted shares by 1.9% after a recent Bitcoin purchase.
  • Bitcoin holdings rose 2.0%, from 673,783 to 687,410 BTC, but BTC per share has fallen since mid-November 2025.
  • Less than 10% of the latest purchase was funded by selling STRC; over 90% came from direct MSTR dilution.
  • MSTR shares have lost about 28% of their value in two months; market capitalization and enterprise value sit at or below the value of the company’s bitcoin holdings.
  • Founder Michael Saylor disputed criticism in a recent interview, asking, “What is your brilliant insight, Danny, that people shouldn’t buy BTC? Is that what you’re trying to say?”

Strategy disclosed that its assumed diluted shares outstanding rose from 345,632 on January 5 to 352,204 after a recent bitcoin purchase, an increase of 1.9%. The company made the purchase as part of its treasury operations and to hold bitcoin on its balance sheet.

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The purchase increased the company’s bitcoin holdings from 673,783 to 687,410 BTC, a 2.0% increase, according to the company’s SEC filing about the purchase. That rise in BTC did not keep pace with share dilution, leaving shareholders with fewer BTC per share than in mid-November 2025.

The SEC filing also shows Strategy funded less than 10% of the purchase by selling STRC. More than 90% of the funding came from issuing new MSTR shares, which increases diluted share count and can lower BTC per share.

MSTR stock has declined about 28% over the past two months, and the company reduced earnings guidance by at least 76%, the reporting shows. The company also moved away from a prior pledge to avoid dilution below a 2.5x multiple-to-Net Asset Value (mNAV). mNAV is the ratio of market value to the company’s net asset value; a 1x mNAV means market value equals net asset value.

Market capitalization and enterprise value for Strategy were reported at or below the value of the firm’s bitcoin holdings, a position that implies investors are assigning little to no value to the company’s operating business beyond its BTC treasury.

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The drop in BTC per share and the funding mix prompted discussion on a popular bitcoin podcast that released an episode featuring Michael Saylor. During the interview, host Danny Knowles asked, “The shareholders in some of these other treasury companies are getting absolutely crushed… Is there any way that some of these companies ever get back to a 1x mNAV?” Mr. Saylor replied, “I just don’t accept the criticism… You made an investment in a company. Why did you invest in the company, right?” He continued, “What is your brilliant insight, Danny, that people shouldn’t buy BTC? Is that what you’re trying to say?”

The company continues to promote corporate bitcoin adoption on its website, bitcoinforcorporations.com. Follow updates at X, Bluesky, Google News, and YouTube.

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