MicroStrategy Stock Hits 4-Month Low as Saylor Loosens Share Issuance Rules

MSTR Stock Slides Alongside Bitcoin

MicroStrategy (NASDAQ: MSTR), the largest corporate holder of Bitcoin, has dropped to its lowest price since April. Shares have fallen 8% since Monday, extending a 21% monthly decline, as both Bitcoin and crypto-linked treasury stocks face headwinds.

The slide coincides with Bitcoin’s retreat from its record high of $124,128 last week to around $113,497, an 8.6% pullback. Other publicly traded firms with large Bitcoin exposure — including Marathon Digital (MARA), Coinbase (COIN), and Riot Platforms (RIOT) — have also seen double-digit losses over the past month.

Saylor Updates Equity Issuance Policy

MicroStrategy’s co-founder and executive chairman Michael Saylor added fuel to the discussion after announcing changes to the company’s equity issuance strategy.

In an X post on Monday, Saylor revealed that the company updated its MSTR Equity ATM (at-the-market) Guidance, lowering the threshold for issuing new shares.

Source: Michael Saylor

Related: Michael Saylor’s MicroStrategy Surpasses 500,000 Bitcoin with Latest Acquisition

Previously, MicroStrategy had pledged not to sell shares when its stock traded below 2.5 times its net asset value (mNAV), except in limited cases such as servicing debt or funding preferred dividends. Now, Saylor says the company can “tactically issue MSTR” even under this level to cover obligations or take advantage of market conditions — potentially to buy more Bitcoin.

At publication time, MSTR’s mNAV stands at 1.55, well below the old limit.

Community Reactions: Split Between Concern and Optimism

The policy shift has divided investors.

• Some shareholders criticized the move, calling it a reversal of guidance given during Q2 earnings. One former shareholder, Josh Man, noted:

“The head of the company said he wouldn’t sell below 2.5 mNAV… then he sold below it.”

• Others welcomed the flexibility, interpreting it as a signal that MicroStrategy could accelerate Bitcoin accumulation. Trader Kale Abe commented:

“He’s literally telling you straight up he’s gonna buy a ton more BTC.”

• Developer and Bitcoin advocate Endre Stolsvik argued that the prior rule was “too strict,” given current valuation levels.

Source: Jeff Walton

Related: Strategy Adds $51M in Bitcoin as BTC Hits $124K Before Sharp Dip

MicroStrategy’s Bitcoin Treasury

As of now, MicroStrategy holds 629,376 BTC, worth approximately $71.34 billion at current market prices, according to SaylorTracker. The company remains the largest corporate Bitcoin holder by a wide margin.

Despite the recent dip, Saylor has consistently framed equity issuance as a tool to expand the firm’s BTC holdings, even if it sparks short-term stock volatility.

Outlook for MSTR and Bitcoin Treasury Stocks

MicroStrategy closed Monday at $336.57, last seen at this level on April 17, when Bitcoin traded near $84,030. With MSTR and other Bitcoin treasury stocks under pressure, market watchers are keeping a close eye on whether Bitcoin stabilizes above $110K.

If BTC resumes its upward trajectory, MicroStrategy’s aggressive Bitcoin strategy may once again prove to be a tailwind for its stock. However, shareholder trust will depend on how the company balances transparency with flexibility in its capital strategy.