Strategy’s newest inventory sale to purchase extra Bitcoin has put investor nerves on edge, as numbers and timing increase recent doubts about shareholder dilution and the corporate’s funding selections.
Strategy: Rapid Shift In Equity Policy
Based on studies, Strategy modified its public steerage on August 18 after which, inside days, moved to difficulty a considerable amount of new inventory.
CryptoQuant analyst JA Maartunn traced the sample: no recent issuance on Aug. 3, roughly $18 million on Aug. 10, about $51 million on Aug. 17 — then near $360 million raised in a single week after the steerage change.
That sharp soar in new capital has drawn scrutiny from market watchers who fear the corporate is leaning on share issuance to maintain shopping for Bitcoin.
The new guidelines hyperlink inventory gross sales to one thing referred to as market internet asset worth, or mNAV, which compares the corporate’s share value to the worth of its Bitcoin.
Strategy working out of steam? 🚂💨
Before Aug 18, virtually no new cash got here into $MSTR:
🔹 Aug 3: $0
🔹 Aug 10: ~$18M
🔹 Aug 17: ~$51MBut after they dropped the “no dilution under 2.5x mNAV” promise, $359M was raised by issuing new shares (see tweet under).
Policy modified.… https://t.co/nenuT1soI3 pic.twitter.com/pORoidxPhf
— Maartunn (@JA_Maartun) August 26, 2025
If the inventory trades at greater than 4 occasions its mNAV, the corporate will promote numerous shares to purchase extra Bitcoin. If it trades between 2.5 and 4 occasions, it’ll promote some shares, however extra rigorously.
And if the inventory drops under 2.5 occasions, share gross sales would largely go towards paying debt or masking dividends as a substitute of shopping for Bitcoin.
Reports add that if Strategy shares commerce beneath 1x mNAV, the corporate may borrow to repurchase inventory. That framework reversed an earlier pledge to not promote shares for Bitcoin purchases when mNAV was under 2.5x — a reversal that critics level to as the important thing change.
BTCUSD buying and selling at $112,984 on the 24-hour chart: TradingView
How The Purchase Was Financed
According to the corporate’s SEC submitting, practically $310 million got here from at-the-market widespread inventory gross sales at a median share value of $354, plus roughly $47 million from most popular share courses.
In complete, the agency raised a bit greater than $357 million and used the proceeds to purchase 3,081 Bitcoin. The buy pushed its holdings to 632,457 BTC.
That stack of 632,457 cash equals roughly 3% of circulating provide, primarily based on market counts cited in filings and market studies. The firm’s public goal stays at 1 million cash — a purpose that, by the reported figures, is now about 60% full.
Dilution Risk And Debt Capacity
Investors centered on dilution have purpose to be frightened. Each new share will increase the variety of claims on the identical Bitcoin pool, and when issuance occurs whereas the inventory trades at low multiples to mNAV, present holders see their per-share Bitcoin backing decline.
Reports say Strategy’s debt sits at about 20% of Bitcoin NAV with headroom as much as 30%, giving it borrowing room — however selecting to difficulty fairness at low mNAVs nonetheless weakens per-share economics.
Featured picture from Meta, chart from TradingView
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