When Bitcoin prices turned against Michael Saylor, he quietly pivoted to risky financial gambit
Fortune • • general
Key Points:
- Since Q2 2020, Strategy's Class A shares outstanding increased 313%, far exceeding dilution levels of comparable large U.S. companies like Wayfair and Twilio.
- Strategy's model focused on increasing Bitcoin per share (BPS) by issuing equity at rising stock prices to buy more Bitcoin, creating a temporary "accretion" effect that boosted BPS significantly.
- After peaking in 2025, Strategy's stock price plummeted 72%, outpacing Bitcoin's 51% decline, causing the dilution strategy to fail and reducing the BPS ratio when selling shares.
- To counteract dilution, Strategy shifted to issuing preferred stock, raising $7 billion in 2025, which helped maintain B
