Schiff: MSTR’s share issuance dilutes bitcoin exposure

In a July 16 post on X, Peter Schiff wrote that Strategy Inc. (Nasdaq: MSTR) is “no longer a leveraged bitcoin bet” and warned that continued share issuance will reduce bitcoin held per common share and shift economic benefits toward creditors and preferred investors.

The company’s public dashboard showed 843,775 BTC, valued at about $54.13 billion, and a figure the company reports as 207,776 satoshis per share. Strategy also reports $6.75 billion in debt and $15.46 billion in preferred securities.

Schiff’s point centers on bitcoin per share rather than the total treasury. If the company issues common or preferred securities faster than it acquires bitcoin, the amount of bitcoin backing each common share will fall.

Recent company figures are mixed. Strategy reported a quarterly bitcoin yield of negative 1.6%, indicating bitcoin exposure per share declined over that quarter. Its year-to-date bitcoin yield was positive 6.6%, indicating net per-share exposure has increased so far this year.

Preferred obligations include $15.46 billion in securities and STRC, a perpetual preferred that pays a variable dividend currently around 12% annually. Strategy may use dollar reserves to pay interest and preferred dividends and then replenish those reserves through capital-market transactions or by selling bitcoin.

Strategy is due to release second-quarter results on July 30. Updated share counts, bitcoin-per-share calculations and disclosure of recent financing will provide data on whether per-share bitcoin exposure is rising or falling.

Investors and analysts will review those disclosures, along with any further issuance or reserve-management actions, to measure how the company’s capital structure affects common shareholders’ bitcoin exposure.