Bitcoin advanced towards the $90,000 mark on Monday despite a significant share sale by BTC treasury firm Strategy that diluted existing shareholders.
The rally followed Strategy’s announcement of an at-the-market offering involving 4.535 million shares, raising approximately $748 million in fresh capital.
The transaction increased the company’s cash reserves to about $2.19 billion while it continues to hold 671,268 Bitcoin valued near $60 billion.
Market participants noted that share dilution is usually seen as bearish, yet Bitcoin’s price action moved in the opposite direction.
Strategy said the funds would be used to support dividend payments on preferred shares and cover interest on outstanding debt.
Shares of the company slipped slightly after the announcement, reflecting investor unease over dilution concerns.
Some analysts questioned whether the move suggested financial stress or a defensive strategy during a prolonged crypto downturn.
They just diluted common stock holders to increase the cash on hand to pay preferred stock holders their interest payments coming due.
Vinny Lingham said.
He added that the decision undermined the long-standing narrative of increasing Bitcoin exposure per share.
Others argued the move strengthened Strategy’s balance sheet and improved long-term financial flexibility.
Building a $2.19B cash reserve strengthens their credit profile and ability to issue future preferred at tighter spreads.
Douglas Borthwick said.
Bitcoin was trading around $88,300 at the time of reporting after briefly touching an intraday high above $90,500.
Trading volume surged nearly 90% to $36.76 billion, signalling renewed market activity.
Bitcoin’s market capitalisation held steady near $1.75 trillion as futures open interest climbed to $58.90 billion.
At the time of reporting, Bitcoin price was $88,574.49.