President Donald Trump has also declared that stock buybacks are a bogus way to raise share prices, but the MicroStrategy Bitcoin example points to a different way to get high income, built by issuing shares instead of buying them back.
His latest comments are about defense contracts. They also fuel a growing debate over how companies move their stocks, whether through buybacks that reduce the number of shares or dilutions that fund the growing bitcoin economy.
What Trump Said About Buybacks
Trump has also stepped up pressure on defense companies on how they spend their money. He signed the chief system in January that the bars of the contracts that do not perform well not to buy and profit until they make good.
The point is straightforward. Repurchases raise stock prices without increasing real capacity, so they require capital to be spent on plants, equipment, and faster production.
The plan is targeting major contractors such as Lockheed Martin, Northrop Grumman, and RTX. Trump has returned to the topic this week, and his back-and-forth comments have caused security concerns in the past.
How the MicroStrategy Bitcoin Model Works
MicroStrategy (now Strategy), takes a different approach. It does not repurchase common stock. It trades new shares with your favorite stock, then spend money on Bitcoin.
That dilution and debt The method has built a reserve of more than 845,000 Bitcoin (BTC), the largest held by any government company.
Michael Saylor paints everything as a way of growing up Bitcoin per share. Those purchases now represent more than four percent of all BTC in circulation.
The company has also bought debt, and bought convertible notes at a discount this year. It’s leaning back property management continue to buy without adding large debts.
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The model works with a flywheel. MicroStrategy issues more stock than the value of its investment, buys more bitcoin, and raises stock per share, which can help its stock price.
The amount is reduced in 2026. With Bitcoin trading near $64,360sales are close to the average price MicroStrategy paid.
The amount has fallen by half over the past year, and its market value has fallen to $40 billion.
When the price disappears, selling new shares adds a small amount of value. The same integration that benefits now provides limited support, a feature that is being seen in the near future The speed of Bitcoin trading.
Both stories open up the same question. Investors and regulators want to know whether a company builds value or simply moves its value.
For MicroStrategy, the answer could be if Bitcoin rises above its value and revives the investment.
A note Trump Calls Out False Stock Purchases: MicroStrategy Bitcoin Model Shows Another Way to Increase Valuation appeared for the first time BeInCrypto.
