MicroStrategy has now gone five straight weeks without buying Bitcoin, instead raising $544.5 million by selling 5.43 million shares. Its cash reserve stands at $3.75 billion, but continued share dilution has sparked criticism, especially after earlier signaling it would avoid issuing stock below a 1.2x NAV.
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“This harms current share holders a lot because Every share sold dilutes existing holders, and they’re being diluted to fund a Bitcoin position that’s already down $8.84 billion,” analyst Bull Theory noted.
What the MSTR Share Sales Actually Buy
Recently, the company raised $466.7 million the same way. All that cash feeds the Digital Credit Capital Framework. This June policy locks money away for one job. It pays dividends on preferred shares and interest on debt.
Those bills run about $1.76 billion a year, per the company’s announcement. The $3.2 billion reserve covers roughly 22 months. The board only requires 12.
“Strategy remains committed to Bitcoin as its primary treasury reserve asset. At the same time, Digital Credit requires liquidity, discipline, and active capital management,” Michael Saylor, Strategy’s founder and executive chairman, said when introducing the framework.
The Trade-Off Facing MSTR Investors
Here is why the cash matters. MicroStrategy paid an average of $75,476 per Bitcoin, or $63.7 billion in all, per its July disclosure. Bitcoin now trades near $64,700, down nearly 48% from its October 2025 peak. That gap created an $8.32 billion paper loss last quarter.
June showed the danger. Strategy sold 3,588 BTC near $60,000 each just to pay dividends. It sold below its own cost. The reserve exists so that never happens again.
The insurance has a price. The two July raises minted roughly 7.6 million new shares. That means near 2% dilution in two weeks, against April’s proxy count of 327 million. Another $23.5 billion in ATM capacity remains.
Early trading suggests investors accept the deal. MSTR changed hands at $96.22 in Monday’s pre-market, up 1.45% from its previous close of $94.85. The stock still sits far below its 52-week high of $437.
Not everyone reads the pivot the same way. Bitwise CIO Matt Hougan believes the firm’s run as dominant buyer is over. Grayscale, however, argues controlled Bitcoin sales could steady BTC rather than sink it. Saylor still calls corporate Bitcoin adoption inevitable.
The question for MSTR investors is simple. Does a smaller slice of a sturdier company beat a bigger slice of a fragile one? The answer arrives the next time MicroStrategy chooses between more Bitcoin and more cushion.
Bitrue