Tempers flare as Bitcoin the bear market deepens.
Strategy’s (MSTR) latest purchase of Bitcoin sparked a public debate on X between Executive Chairman Michael Saylor and Bitcoin advocate Matthew Kratter over whether the company’s most recent capital raise was accretive or dilutive to shareholders.
The disagreement centers on Strategy’s own Bitcoin performance metric, BTC Yield, which is designed to track changes in Bitcoin holdings per assumed diluted share. According to the latest figures from Strategy, the BTC yield increased from 13.0% on June 1 to 12.8% on June 8, after the company acquired an additional 1,550 BTC.
Kratter argued that the drop shows that the transaction was dilutive on a bitcoin per share basis. During the same period, Strategy’s bitcoin holdings increased from 843,706 BTC to 845,256 BTC, while assumed diluted shares outstanding increased from 382.756 million to 384.180 million. The year-to-date BTC gain also increased from 87,754 BTC to 86,328 BTC.
Saylor countered, saying BTC yield is a narrow KPI that only measures bitcoin per share, not total shareholder accretion. Saylor said the transaction also added approximately $100 million in U.S. dollar reserves, bringing the total U.S. dollar reserve to $1 billion, making the deal accretive when bitcoin and cash are included.
Looking strictly at BTC yield, the latest increase appears dilutive. But when you include cash reserves and broader balance sheet effects, Saylor says the deal improved shareholder value.
Others intervened. “Notice how they keep changing the rules to suit the financial alchemy they practice,” Wazz said. “The first $BTC yield was touted everywhere and displayed in every buy announcement as a standard accretive metric. It is now a ‘narrow KPI’ that is no longer relevant.”
“As a short seller, I have seen countless companies ‘move the goal posts’ and try to focus the market on new indicators while the old ones no longer show the story they want,” Quoth the Raven wrote. “Sometimes companies delete key performance indicators (KPIs) altogether and use new ones. »
