Michael Saylor diluted MSTR by $735.2 million after saying he wouldn’t

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—by Protos Staff

Michael Saylor has diluted common shareholders of Strategy (formerly MicroStrategy) by $735.2 million just two weeks after he promised not to.

On July 31, 2025, Saylor and his executives delivered Strategy’s Q2 earnings presentation, assuring shareholders that the company wouldn’t dilute MSTR to buy bitcoin (BTC) between a multiple-to-net asset value (mNAV) of 1x and 2.5x except to service interest or dividend payments.

On August 18, however, Saylor revoked that guidance entirely and the company rewrote a slide to remove the promise from its presentation.

Saylor took advantage of the revision, immediately diluting MSTR shareholders.

Michael Saylor continues to dilute MSTR after modifying promise

Read more: Strategy loyalists sell MSTR, say Michael Saylor lied about dilution

Another $735.2 million of MSTR diluted

As of September 1, Strategy had diluted MSTR by $425.3 million between 1-2.5x mNAV. Last week, Strategy diluted MSTR by another $309.9 million, also between 1-2.5x mNAV.

For context, the current basic mNAV of MSTR is 1.38x and its enterprise value mNAV is 1.59x.

For the past few weeks, MSTR has traded within the precise range that Strategy originally promised to protect from ongoing dilution.

The company has clearly reneged on that promise.

Unlike most companies that are valued by investors using discounted cash flow analysis, Strategy investors mostly value the company based on its BTC holdings and the probability that the company will utilize, invent, and sell financial products derived from them.

In other words, Strategy is the world’s largest so-called BTC treasury company.

For example, Saylor claims to be “building out the yield curve for BTC credit” at Strategy by inventing and selling preferred shares like STRK, STRF, STRD, and STRC.

The company also has $8.2 billion in notional debt outstanding, a long options chain, and a global web of funds that hold MSTR as a constituent.

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