Yulia Slavina

Raising equity at a lower premium may be dilutive but not impossible, Scott Melker notes

Raising equity at a lower premium may be dilutive but not impossible, Scott Melker notes
Strategy retains large equity ATM option

Scott Melker, owner and content creator, challenges the view that Strategy is blocked from future equity raises if MSTR trades at or below NAV.

He states that Strategy maintains access to a $21 billion equity ATM, meaning it can raise equity even at a lower premium. Melker clarifies that while doing so might be dilutive to shareholders, dilution does not equate to impossibility.

Melker previously highlighted panic selling in crypto markets following a minor BTC sale by Strategy and wallet movements at Mt. Gox, noting that no large transactions occurred at the time. He also reported that JPMorgan raised its S&P 500 year-end target to 7,800, citing strong AI-related earnings and easing geopolitical risks. Melker's commentary addresses market reactions across both crypto and equities.

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