Michael Saylor Changes Rules for Issuing MSTR Shares as Bitcoin Premium Fades

Michael Saylor, Executive Chairman of MicroStrategy, has reversed his previous stance and now allows the issuance of new MSTR shares even if the market value to Bitcoin holdings ratio (mNAV) falls below 2.5x. This shift comes at a time when the company’s stock has lost the long-standing premium it once had over Bitcoin.

🔹 Saylor Relaxes Funding Rules At the end of July, MicroStrategy reassured investors that it would avoid issuing new shares if mNAV dropped below 2.5 times the value of its Bitcoin holdings. Saylor referred to this metric as the “mNAV premium.” However, since November, this figure has plunged from 3.4x to the current 1.6x, forcing a change in strategy. According to Bloomberg, the company described the policy shift as providing “greater management flexibility.” The move gives MicroStrategy more room to raise cash for further Bitcoin purchases, even if it means shareholder dilution.

🔹 Bitcoin Purchases Slow, Strategy Adjusts The change came shortly after MicroStrategy bought another $51 million worth of Bitcoin on August 18. In recent weeks, however, its pace of BTC purchases has slowed dramatically—from billions of dollars down to just a few million. This reflects the mNAV ratio’s decline below the 2.5x threshold. Brian Dobson of Clear Street commented:

“Additional language in the guidelines gives them more leeway in issuing common stock. This should allow the company to be more opportunistic in Bitcoin acquisitions.”

🔹 MSTR Stock Under Pressure, BTC at Highs Shares of MicroStrategy (NASDAQ: MSTR) have stagnated around $360 for the past four months, showing little growth. Meanwhile, Bitcoin has surged to new all-time highs, further erasing the premium gap between MSTR’s stock and its BTC holdings. Crypto analyst Ali Martinez notes that the MSTR chart is forming a classic head-and-shoulders pattern, warning that a breakdown below $360 could push the stock down to $300. Adding to the pressure, investment giant Vanguard reduced its stake in MicroStrategy by 10% in the second quarter. With volatility fading and retail participation shrinking, the company’s stock faces mounting headwinds.

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