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.