Saylor Addresses Controversy Over Alleged Dilution From Strategy Share Sale

Strategy’s BTC Yield declined from 13.0% to 12.8% after its latest bitcoin purchase, sparking a heated discussion on X over whether the move was dilutive to shareholders.

The debate comes amid a broader bitcoin (BTC) downturn, with Strategy (MSTR) once again under scrutiny for how it funds and reports its bitcoin accumulation strategy.

A public exchange has unfolded on X between Executive Chairman Michael Saylor and bitcoin advocate Matthew Kratter over whether the company’s recent capital raise and BTC purchase increased or reduced shareholder value.

At the heart of the dispute is Strategy’s internal KPI, BTC Yield, which tracks bitcoin per assumed diluted share. Company disclosures show the metric fell from 13.0% on June 1 to 12.8% on June 8 after the purchase of 1,550 BTC.

Kratter argued the decline indicates dilution on a per-share bitcoin basis. Over the same period, Strategy’s holdings rose from 843,706 BTC to 845,256 BTC, while assumed diluted shares increased from 382.756 million to 384.180 million. BTC Gain year-to-date also slipped from 87,754 BTC to 86,328 BTC.

Saylor responded that BTC Yield is a narrow metric focused only on bitcoin per share and does not capture overall shareholder value creation. He added that the deal also increased U.S. dollar reserves by roughly $100 million, bringing total cash reserves to about $1 billion, which he said makes the transaction accretive when both BTC and cash are included.

On a strict bitcoin-per-share basis, the figures suggest dilution. But when broader balance sheet effects are considered, Saylor maintains the transaction still improves shareholder value.

The discussion also drew criticism from other commentators, some of whom argued that Strategy is selectively shifting metrics, pointing out that BTC Yield had previously been highlighted as a key measure of performance.

Others compared the situation to a common corporate pattern, where companies adjust or replace KPIs when earlier ones no longer present results in their favor.