Re: MicroStrategy Buys $250M in Bitcoin, Calling the Crypto ‘Superior to Cash’
by on 13/12/2025, 09:54:50 UTC
We must remember that when they ATM MSTR, they are diluting shareholders.
They are diluting investors, in my opinion, only if the BTC yield is below zero.
I see MSTR as a way of purchasing Bitcoin, so for me, the true hurdle rate is the SATS/Share ratio.
I know this is different from traditional finance, where the raised capital dilutes existing shareholders, but I am changing the perspective a little here.
It is an intriguing approach to the strategy of MicroStrategy and it is reasonable when considered through the prism of Bitcoin. Traditionally, finance wise speaking, ATM offerings do water down shareholders by adding to the number of shares. But when the capital raised is invested in buying Bitcoin and the BTC yield per share proceeds to rise, then long term holders will be benefiting. Then the more significant measure is the sats-per-share ratio as opposed to short term stock price dilution. Naturally, such a strategy will only pay off provided that Bitcoin will be more effective than cash in the long term. This approach is optimal to satisfy the long-term belief of investors that consider MSTR to be primarily a proxy of exposure to Bitcoin.