Scrutiny Mounts on Strategy Behind Stock Issuance for Bitcoin Acquisitions

Strategy’s recent stock offering to acquire additional Bitcoin has created anxiety among investors, as figures and timing instill new concerns about shareholder dilution and the organization’s funding selections.

Strategy: Swift Change In Equity Strategy

According to reports, Strategy altered its public disclosures on August 18 and then, within days, initiated a significant amount of new stock output.

CryptoQuant analyst JA Maartunn tracked the trend: no new issuance on Aug. 3, approximately $18 million on Aug. 10, about $51 million on Aug. 17 — then close to $360 million acquired in just one week after the disclosure modification.

This sharp increase in fresh capital has attracted attention from market analysts who fear the firm is relying on stock issuance to continue accumulating Bitcoin.

The new regulations connect stock sales to a metric known as market net asset value, or mNAV, which juxtaposes the corporation’s share price against its Bitcoin value.

Strategy running out of steam? 🚂💨

Before Aug 18, nearly no new funds flowed into $MSTR:
🔹 Aug 3: $0
🔹 Aug 10: ~$18M
🔹 Aug 17: ~$51M

However, after they abandoned the “no dilution below 2.5x mNAV” commitment, $359M was procured through the issuance of new shares (see tweet below).

Policy transformed.… https://t.co/nenuT1soI3 pic.twitter.com/pORoidxPhf

— Maartunn (@JA_Maartun) August 26, 2025

If the stock trades at more than four times its mNAV, the firm will sell numerous shares to acquire more Bitcoin. If it trades between 2.5 and four times, it will sell some shares, albeit more cautiously.

And if the stock falls below 2.5 times, share sales would largely be directed toward settling debts or covering dividends rather than purchasing Bitcoin.

Reports indicate that if Strategy shares trade under 1x mNAV, the firm could take loans to buy back stock. This framework overturned a previous promise not to sell shares for Bitcoin acquisitions when mNAV was below 2.5x — a reversal that critics highlight as the pivotal alteration.

BTCUSD trading at $112,984 on the 24-hour chart: TradingView

How The Acquisition Was Funded

As per the company’s SEC submission, nearly $310 million originated from at-the-market common stock transactions at an average share price of $354, alongside roughly $47 million from preferred share classes.

In total, the firm garnered a little more than $357 million and allocated the earnings to acquire 3,081 Bitcoin. The purchase elevated its holdings to 632,457 BTC.

This stockpile of 632,457 coins is approximately 3% of the circulating supply, based on market assessments referenced in submissions and market analyses. The company’s public goal remains at 1 million coins — a target that, according to the reported data, is now about 60% fulfilled.

Dilution Anxiety And Debt Capacity

Investors concerned about dilution have justification for apprehension. Each new share amplifies the number of claims on the same Bitcoin pool, and when issuance occurs while the stock trades at low multiples to mNAV, existing shareholders experience a decline in their per-share Bitcoin backing.

Reports suggest Strategy’s debt stands at about 20% of Bitcoin NAV with room to grow up to 30%, allowing for borrowing opportunities — yet the choice to issue equity at low mNAVs still undermines per-share economics.

Featured image from Meta, chart from TradingView

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