Michael Saylor‘s latest Bitcoin (CRYPTO: BTC) accumulation announcement has reignited debate over whether the company should continue issuing stock to accumulate more BTC as Strategy (NASDAQ:MSTR) trades below its targeted valuation threshold.

BTC Purchase Is Expected, But Funding?

In an X post on June 22, Treasury BTC founder and CEO Khing Oei advised investors should focus less on the size of Strategy’s Bitcoin purchases.

Referencing Saylor’s Bitcoin accumulation teaser on June 21, Oei argued that the financing method now carries the most important signal for investors.

"The Bitcoin purchase itself is the expected part. The information is in how it gets funded," Oei wrote. For the period between June 15 and June 21, Strategy purchased 520 BTC for $34.9 million and added $300 million to its dollar reserve.

Oei pointed to Strategy’s previously disclosed framework that suggests issuing common shares to buy Bitcoin becomes accretive when the stock trades above roughly 1.22x multiple-to-net-asset value (mNAV).

With MSTR recently trading around 1.13x mNAV, he argued common equity is no longer the company’s cheapest source of capital.

He added that Strategy’s preferred share vehicle, (NASDAQ:STRC), is also constrained when it trades below its $100 par value.

Oei pushed back against concerns about Strategy’s financial stability, noting that the company still maintains substantial flexibility.  "The funding line in tomorrow’s filing will tell us more than the Bitcoin number," he said.

Dilution Concerns Emerge

In an X post on June 22, market commentator Ran Neuner criticized the latest purchase, claiming it marked the third consecutive week in which shareholders were diluted.

He argued that issuing shares while MSTR trades below its mNAV threshold reduces Bitcoin per share, a key metric closely watched by Strategy investors. Neuner suggested two possible explanations for the continued buying activity.

"He is addicted to buying at any cost," Neuner said of Saylor, before adding that Strategy could also be pursuing growth targets sought by analysts or rating agencies.

His conclusion was straightforward: "Saylor should stop and do nothing until the storm passes."

However, crypto analyst Michaël van de Poppe argued that fears surrounding Strategy and its capital structure are overblown in an X post on June 21.

"I think that we’ll continue to bounce up with STRC tomorrow and that will drag Bitcoin back up," he noted.

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