Shareholder Dilution Accelerates MicroStrategy’s Crisis

[nihalsari]

MicroStrategy’s reliance on shareholder dilution to fund Bitcoin buys is intensifying. Since recently removing guardrails, the firm diluted common shareholders by over 3.27 million shares to finance $1.1 billion in BTC purchases.

This accounts for roughly 94% of the company’s recent Bitcoin acquisitions. Dilution directly undermines the incentive to invest in MicroStrategy stock versus buying Bitcoin itself, especially as the company continues underperforming the token it holds.

Investors now face a precarious choice: support further dilution or risk losing corporate influence over BTC accumulation.

[Nahid10]

MicroStrategy funding 94% of its BTC buys through dilution makes the stock less attractive than Bitcoin itself.

[kelson10]

Shareholders are stuck choosing between more dilution or giving up influence over BTC strategy.