President Donald Trump has renewed his criticism of stock buybacks, labeling them a 'fake' way to boost share prices, particularly targeting defense contractors like Lockheed Martin. He issued an executive order in January barring underperforming contractors from buybacks until production improves. Meanwhile, MicroStrategy (now Strategy) takes the opposite approach, issuing new shares and preferred stock to purchase Bitcoin rather than repurchasing stock. The company holds over 845,000 BTC, representing more than 4% of all Bitcoin in circulation, making it the largest corporate Bitcoin holder. CEO Michael Saylor frames each raise as a method to grow Bitcoin per share. However, the success of this model relies on a premium between MicroStrategy's stock price and its Bitcoin holdings. In 2026, with Bitcoin near $64,360, the premium has thinned, and MicroStrategy's stock has fallen over 50%, with market value declining toward $40 billion. The dilution that once powered gains now offers limited support. Both approaches raise questions about value creation versus share price manipulation.

Key facts

• Trump signed executive order barring underperforming defense contractors from buybacks.
• MicroStrategy holds over 845,000 BTC, over 4% of all Bitcoin in circulation.
• MicroStrategy issues stock and preferred shares to buy Bitcoin, not repurchase shares.
• MicroStrategy's stock has fallen over 50% as Bitcoin nears purchase price.
• Model relies on premium; thinning premium reduces benefit of share issuance.

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