Strategy's Latest Capital Raise Sparks Debate Over Accretion and Dilution

A public debate has been sparked between Michael Saylor and Matthew Kratter over the latest capital raise by Strategy. The disagreement centers on whether the transaction was accretive or dilutive for shareholders.

According to Strategy's own metric, BTC Yield, the company's Bitcoin holdings per assumed diluted share fell from 13.0% on June 1 to 12.8% on June 8, after acquiring an additional 1,550 BTC. Kratter argued that this decline indicates a dilutive effect on a bitcoin-per-share basis.

Saylor countered by pointing out that the transaction also added approximately $100 million of U.S. dollar reserves, taking the total USD reserve to $1 billion. He claimed that when both Bitcoin and cash are included, the deal was accretive for shareholders.