Bitcoin treasury firm Technique diluted shareholders of MSTR, the corporate’s frequent inventory, by $333.7 million final week and purchased no bitcoin ($BTC). As a substitute, the corporate redirected about 40% of the proceeds to repurchase STRC for its most well-liked shareholders, 16% as STRC dividends, and saved the remaining for itself as money.
Technique disclosed the transactions in an SEC submitting this morning. It was the corporate’s fourth straight week of diluting MSTR shareholders with $0 $BTC purchases.
In truth, Technique has not elevated its $BTC holdings since June 21, 2026. It owns 6,916 fewer $BTC right now than it did two months in the past.
As a reward for patiently enduring founder Michael Saylor’s shareholder dilution program, MSTR shareholders have misplaced 16% of their funding because the firm reported its final $BTC buy.
In truth, because the July 2025 debut of STRC on the Nasdaq, the value of MSTR has declined 75%.
The STRC rollercoaster from $100 to $71.25 to $95
Technique has raised roughly $16.3 billion by diluting MSTR because it launched STRC, a dividend-paying most well-liked share that’s alleged to commerce close to $100 but has truly traded as little as $71.25 on the Nasdaq.
As STRC collapsed earlier this yr, the corporate began to stack USD as a substitute of $BTC — an effort to guarantee traders that it might pay STRC dividends. It additionally resorted to direct buybacks of STRC after amassing money didn’t do the trick.
Nonetheless, STRC languishes, buying and selling under $95 right now.
Technique has bought practically 7,000 $BTC in 2026
Saylor’s firm has purchased again $347 million price of STRC — reversing STRC’s supposed $BTC accretion profit for MSTR shareholders.
Initially, Technique designed STRC to promote for $100 and fund $BTC purchases for the advantage of all shareholders, together with MSTR particularly.
As a substitute, for the previous two months, the corporate has been doing the alternative: promoting MSTR plus $BTC holdings and shopping for again STRC.
MSTR suffers as STRC struggles method under par
Technique has thrown most of its steadiness sheet at pushing the value of STRC again up. It has lifted its dividend from 9% at launch and raised it to 12% — a fee extra typical of distressed debt. It moved to paying that dividend twice a month. Saylor even constructed up Technique’s money place to $4.8 billion.
Annoyed, in July, it began shopping for the shares again on the open market.
It will probably solely purchase again shares for thus lengthy, and administration is beginning to hedge. The corporate acknowledged, “We is not going to essentially enhance the STRC dividend fee solely as a result of STRC trades under its acknowledged quantity.” Its personal quarterly report concedes, “We can not guarantee that STRC inventory will commerce in that vary or at any explicit value.”
Saylor is much less equivocal. He informed analysts on July 30, “STRC will return to par, and the one query is how a lot cash or time will we’ve got to exert to get it to par.”
Frequent shareholders are paying for that return.
Regardless of fee hikes, twice-monthly payouts, unprecedented gross sales of $BTC, and $347 million of buybacks, STRC has moved from the mid-$80s to about $95, nonetheless 5% under par.
