For the primary time ever, MicroStrategy admitted that over the course of a single week, it diluted all 4 courses of the corporate’s public securities.
The liquidations are classed as accretive dilution as a result of the gross sales permit the corporate to purchase barely extra bitcoin (BTC) than the proceeds of its gross sales.
That is solely potential, in fact, as a result of buyers bid up its shares to a premium to its BTC holdings, and founder Michael Saylor clearly hopes to proceed attracting bids that keep it.
The corporate made $472 million in web proceeds by dumping shares of MSTR, STRK, STRF, and STRD at-the-market (ATM). By instantly diluting prior shareholders in every class, the corporate then purchased the identical quantity of BTC.
This complicated train — diluting shareholders to purchase BTC for shareholders — has develop into commonplace at MicroStrategy.
By specializing in the 21 million provide cap of BTC and its potential for parabolic worth appreciation, the corporate slowly provides dangerous leverage to its steadiness sheet to gobble up extra of the restricted provide of BTC.
MicroStrategy nonetheless buying and selling at a soft BTC a number of
Gaining affirmation from Wall Road for this conduct, the corporate’s frequent inventory enjoys a beneficiant 1.7X a number of to its $72 billion BTC treasury.
Certainly, the corporate now owns 601,550 BTC or 2.9% of its most provide. Vanishingly few entities with bigger holdings stay: Blackrock’s IBIT ETF, Satoshi Nakamoto, and some others.
MicroStrategy holds much more BTC than Binance.
That is the primary 4TM sure
— Adrian Morris (@Adrian_R_Morris) July 14, 2025
The corporate’s most up-to-date 8-Ok submitting disclosed its sale of 797,008 frequent MSTR shares plus 573,976 STRK, 444,005 STRF, and 158,278 STRD.
STRK, STRF, and STRD are dividend-yielding most well-liked shares which might be senior to frequent shareholders however junior to debtholders.
MicroStrategy promptly used the cash to purchase 4,225 BTC at a mean worth of $111,827 per coin. The forex then rallied north of $122,000 after its purchases final week — placing each buy by the corporate in revenue.
The corporate’s value foundation is $71,268. As of publication time, the unrealized return on that funding exceeds 68%.
