Strategy Stock Hits 4-month Low As Saylor Eases Share Issuance Rules

Michael Saylor’s Bitcoin-focused firm Strategy has fallen 8% this week, hitting its lowest point in nearly four months. The decline coincides with an 8.6% drop in Bitcoin from last Thursday’s record $124,128 and follows Strategy’s decision to loosen restrictions on issuing shares.

Previously, MSTR could only issue shares below 2.5 times its net asset value to cover debt or fund preferred equity dividends. The new rules expand issuance to any situation deemed “advantageous,” including potentially buying more Bitcoin. Some shareholders criticized this as a reversal from Q2 guidance, while others viewed it as a chance for further Bitcoin accumulation.

At present, Strategy’s mNAV stands at 1.55, highlighting the pressure on the stock. Still, Saylor’s move underscores his focus on tactical flexibility to maintain liquidity, manage debt, and strengthen the firm’s long-term Bitcoin position, even as markets remain volatile.

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