Michael Saylor’s Strategy (MSTR) stock price has slipped to its lowest level since April, as investors reacted to changes in the company’s equity issuance policy and a broader downturn in Bitcoin treasury stocks.
MSTR Drops Amid Bitcoin Pullback
Strategy’s share price has fallen 8% this week, now trading at $336.57, its weakest level since April 17. The decline coincides with an 8.6% drop in Bitcoin, which has retreated from its recent all-time high of $124,128 to around $113,498.
Over the past month, MSTR has lost more than 21% of its value, reflecting both market-wide weakness in crypto equities and investor unease about the firm’s new capital guidance.
In an announcement posted on X, Michael Saylor revealed that Strategy is lowering its threshold for issuing new MSTR shares. Previously, the company committed to only selling stock below 2.5x its net asset value (mNAV) to cover debt or fund dividends.
The new guidance expands this flexibility, allowing the firm to issue shares below the 2.5x mNAV multiple when it sees strategic advantages, including buying more Bitcoin.
Currently, Strategy’s mNAV stands at 1.55, meaning the stock is trading at a discount compared to its Bitcoin holdings.
Investor Reactions Divided
The change sparked mixed reactions:
- Some shareholders criticized the move, calling it a reversal from commitments made during the Q2 earnings call. One former shareholder commented that Saylor had broken trust with investors by changing the threshold.
- Others in the crypto community viewed it positively, noting that more flexible issuance could enable Strategy to increase its Bitcoin reserves. As one trader put it: “He’s literally telling you straight up he’s gonna buy a ton more BTC.”
At present, Strategy holds 629,376 Bitcoin — worth over $71 billion — cementing its position as the largest corporate Bitcoin holder.
Other crypto-related equities have also struggled in recent weeks:
- MARA Holdings (MARA): down 19.44%
- Coinbase (COIN): down 26.97%
- Riot Platforms (RIOT): down 14.69%
This broader decline highlights how closely Bitcoin treasury companies remain tied to the performance of BTC itself.
While the updated equity guidance may unsettle some investors, it could also provide Strategy with greater agility to accumulate Bitcoin during market dips.
For now, however, the stock remains under pressure, and with Bitcoin trading below recent highs, both MSTR and other crypto treasury stocks are facing heightened volatility.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.