MicroStrategy Announces $22 Million Bitcoin Purchase
MicroStrategy announced a $22 million Bitcoin purchase today, highlighting growing fears of shareholder dilution. The firm has refused to reinstate guardrails that could prevent this.
MicroStrategy is caught between two bearish scenarios. If it stops buying BTC, it could collapse market confidence. However, if it dilutes shareholders to fund these buys, the firm will continue underperforming the asset it holds.
MicroStrategy’s Dilution Crisis
MicroStrategy has earned significant success with its Bitcoin accumulation plan, but cracks are forming in recent weeks. The firm’s purchase size has diminished, with Chairman Michael Saylor announcing a $22 million BTC acquisition today:
> “Strategy has acquired 196 BTC for ~$22.1 million at ~$113,048 per bitcoin. As of 9/28/2025, we hodl 640,031 $BTC acquired for ~$47.35 billion at ~$73,983 per bitcoin. $MSTR $STRC $STRK $STRF $STRD”
> — Michael Saylor (@saylor) September 29, 2025
This sum is considerably smaller compared to previous buys, raising concerns about an urgent dilemma facing MicroStrategy: the firm increasingly relies on shareholder dilution to fund these purchases.
Dangerous Warning Signs
Although Michael Saylor previously claimed in July that MicroStrategy would avoid diluting shareholders’ Bitcoin exposure, he made changes to this policy last month. He announced the possibility of selling stock for various reasons beyond purchasing BTC and removed guardrails protecting investors’ positions.
Since implementing these measures, MicroStrategy has diluted common shareholders by 3,278,660 shares to finance over $1.1 billion in new Bitcoin purchases—representing 1.2% of shareholder float and funding around 94% of the company’s BTC acquisitions in the last month.
MicroStrategy’s stock dilution poses crucial risks, particularly undermining the incentive to invest in MSTR instead of directly buying BTC. Despite acquiring approximately 10,000 bitcoins since August, the firm has trailed significantly behind the token’s performance.
No Clear Way Out
While the company recently avoided a class-action lawsuit, it serves as a critical warning sign. MicroStrategy’s inconsistent earnings have already hindered its reputation, and shareholder dilution could worsen the situation.
The firm has a fiduciary responsibility to maximize shareholder value, which may conflict with its acquisition strategy. Like the Red Queen from Alice in Wonderland, a BTC digital asset treasury must constantly speed up to stay afloat. MicroStrategy plays a crucial role in corporate confidence in Bitcoin; if it ceases its buying spree, the token price may fall, irrespective of dilution.
There isn’t a straightforward solution to this crisis. Michael Saylor must not only maintain profitability but also outperform Bitcoin. Shareholder dilution may currently be the only means to keep MicroStrategy at the forefront, yet it risks triggering a more significant implosion.
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