Strategy hits 4-month low as Saylor changes tack on MSTR issuance

Saylors Strategy stock price taps its lowest point since April amid controversy over equity guidance changes and a broader downturn among Bitcoin treasury companies.

Michael Saylors Strategy (MSTR) has dropped to its lowest level in nearly four months amid a broader decline in crypto treasury firms, a Bitcoin dip, and after Saylor indicated the company would lower restrictions on issuing more shares.

The stock price has fallen 8% since Monday, and the plunge also comes alongside an 8.6% decline in Bitcoins (BTC) price since hitting a new all-time high of $124,128 last Thursday.

Saylor lowers the threshold for selling MSTR to buy Bitcoin

“Strategy today announced an update to its MSTR Equity ATM Guidance to provide greater flexibility in executing our capital markets strategy,” Saylor said in an X post on Monday, including a chart showing changes to the companys ability to issue shares below its previous limit.

Source: Michael Saylor

The update specified that when MSTR trades below 2.5 times its net asset value (mNAV) — which shows how much more or less the market values a Bitcoin-holding company than its actual BTC stash — the company can “tactically issue MSTR” to cover debt interest, fund preferred equity dividends, and “when otherwise deemed advantageous to the company.”

Some MSTR shareholders slammed the change, arguing it was a stark reversal of its Q2 earnings report, which only mentioned issuing shares below this level to pay debts or fund preferred equity dividends.

Others, however, saw it as a positive for Bitcoin, as it would potentially allow MSTR to buy more.

Strategys mNAV stands at 1.55 at the time of publication, according to Strategy data.

Source: Jeff WaltonSaylors announcement divides the community

Crypto trader Kale Abe said, “Hes literally telling you straight up hes gonna buy a… ton more BTC.”

At the time of publication, the firm holds 629,376 Bitcoin, worth approximately $71.34 billion, according to SaylorTracker.

Another commentator, Josh Man, who claims to be a prior shareholder, said, “The head of the company said he wouldnt sell below 2.5 mNAV, so I bought. He made this agreement with the shareholder at the live earnings release. And then he sold below mNAV 2.5.”

Meanwhile, Bitcoin maxi and developer Endre Stolsvik said it may be a more feasible option for Strategy.

“The ‘no issue below mNAV 2.5’ was too strict, given that were far away, now at 1.59,” Stolsvik said.

Over the past month, MSTR has declined 21.04%, and is now trading at $336.57. The last time MSTR traded at this level was April 17, when Bitcoin was $84,030.

Several other public companies holding Bitcoin have also posted stock price declines over the past month. MARA Holdings (MARA) is down 19.44%, Coinbase Global Inc (COIN) is down 26.97%, and Riot Platforms (RIOT) is down 14.69%.