Analysis News Today TheBitTimes.com

Michael Saylor has taken immediate advantage of his modified promise about diluting common shareholders with today’s massive increase in the supply of Strategy, formerly known as MicroStrategy (MSTR). This morning, he announced 875,301 more shares sold of MSTR under his at-the-market (ATM) offering. Those sales would have been prohibited under slide 96 of the company’s original Q2 2025 earnings presentation. For a few weeks, the company stated unequivocally, “We will not issue MSTR below 2.5x mNAV except to pay interest and dividends.” As of publication time, the Enterprise Value mNAV of MSTR is 1.59x. Fortunately for Saylor, that sentence was erased from the revised, August 18 version. The new promise allows Strategy the freedom to dilute shareholders in order to “provide greater flexibility in executing our capital markets strategy.” What that vague revision means, in practice, is that the company was able to issue more MSTR below 2.5x mNAV today. MSTR dilution t...

Michael Saylor’s Strategy (MSTR) is raising its target for its equity sale to fund Bitcoin purchases to $2 billion, quadrupling its original target. The company is moving ahead with the sale of its Series A Perpetual Stretch preferred shares, which will be priced at $90 each. Strategy is continuing its massive Bitcoin plan as the coin continues to surge, most recently hitting an ATH of $123,000. This offering comes at a time when the company’s stock has surged 42.5% year-to-date, and is trading around $417 on Thursday. The offering is being managed by a group of banks, including Morgan Stanley, Barclays, Moelis & Company, and TD Securities. The sale will include 5 million Stretch shares, a number confirmed by Bloomberg. Strategy acquired 4,225 BTC between July 7 and July 13 at an average price of $111,827 per coin. That latest purchase brings Strategy’s total holdings to 601,550 BTC, acquired at a combined purchase price of $42.87 billion and an average cost basis of $71,268 per ...

For the first time ever, MicroStrategy admitted that over the course of a single week, it diluted all four classes of the company’s public securities . The liquidations are classed as accretive dilution because the sales allow the company to buy slightly more bitcoin (BTC) than the proceeds of its sales. This is only possible, of course, because investors bid up its shares to a premium to its BTC holdings, and founder Michael Saylor obviously hopes to continue attracting bids that maintain it. The company made $472 million in net proceeds by dumping shares of MSTR, STRK, STRF, and STRD at-the-market (ATM). By immediately diluting prior shareholders in each category, the company then bought the same amount of BTC. This confusing exercise — diluting shareholders to buy BTC for shareholders — has become commonplace at MicroStrategy.  By focusing on the 21 million supply cap of BTC and its potential for parabolic price appreciation, the company slowly adds r...

A few weeks ago, MicroStrategy (MSTR) founder Michael Saylor was boasting about a breakthrough in financial engineering. A black hole of non-dilutive, dividend-yielding preferred shares could suck in dollars from fixed income investors and allow the company to accrete vast quantities of bitcoin (BTC) for shareholders on a dilution-adjusted basis. A tool of ideal torque to raise capital for BTC purchases without diluting common shareholders , Saylor sang the praises of three preferred series: Strike (STRK), Strife (STRF), and Stride (STRD). All of them attracted some capital for MicroStrategy’s 597,325 BTC treasury that now exceeds 3% of BTC’s circulating supply. Fans of Saylor thought demand would continue to grow. However, it wouldn’t be long before the arc of reality bent away from Saylor’s event horizon. Saylor goes back to the ATM Indeed, MicroStrategy’s latest Securities and Exchange Commission filing discloses that the company has already returned to...