Michael Saylor Loosens Stock Rule as MicroStrategy Adds $51M in Bitcoin
MicroStrategy’s chairman Michael Saylor has changed his mind, relaxed a key financing rule to buy more Bitcoin.
Quick overview
- MicroStrategy's chairman Michael Saylor has relaxed a key financing rule, allowing the company to issue new shares even when its market value-to-Bitcoin holdings ratio is below 2.5x.
- This change comes as MicroStrategy made a $51 million Bitcoin purchase, significantly smaller than previous multibillion-dollar buys.
- MSTR stock has been stagnant at around $360 for four months, with bearish sentiment growing as its market value-to-Bitcoin ratio has fallen to 1.6x.
- While the policy change offers more financial flexibility, it raises concerns about potential dilution for investors.
MicroStrategy’s chairman Michael Saylor has changed his mind, relaxed a key financing rule to buy more Bitcoin. The company, the largest corporate holder of Bitcoin, will now issue new MSTR shares even when its market value-to-Bitcoin holdings ratio (mNAV) is below 2.5x.
This reverses what Saylor said in late July when he told investors the company would not issue stock below 2.5x. At the time MSTR’s mNAV was 3.4x, but it has since fallen to 1.6x as the stock has gotten cheaper relative to its Bitcoin reserves.
Industry insiders see this as a practical move. Bloomberg reports management called it “flexibility” to ensure liquidity and buy more Bitcoin.
$51 Million Bitcoin Purchase Sparks Debate
The policy change coincided with MicroStrategy’s latest $51 million Bitcoin purchase on August 18. That’s a much smaller buy than the multibillion dollar buys of past cycles as the stock has gotten cheaper to Bitcoin.
Key points:
- MicroStrategy has over 226,000 BTC, worth over $13 billion.
- MSTR stock has been stuck at $360 for four months.
- mNAV is below 2.5x, causing bearish sentiment.
Wait till the Bro's figure out Bitcoin can't have 300% gains every year forever…
Remember Cathie Woods and Michael Saylor saying 10 million by now?😂
That's the kind of bullshit hyperbole that keeps real investors from diving in (no, Blackrock isn't a real investor).— Greg Collins (@gregarizona) August 19, 2025
Despite all this Saylor remains bullish. “The extra flexibility allows us to be more opportunistic,” said Brian Dobson, managing director for Disruptive Technology Equity Research at Clear Street.
MSTR Stock Under Pressure
MSTR stock has been struggling, unable to break above $360. Technical analysts like Ali Martinez say MSTR is forming a head-and-shoulders pattern that could take the stock down to $300 if support fails.
Investor sentiment is also cracking. Vanguard, one of the largest institutional holders, reduced its MSTR position by 10% in Q2. With volatility shrinking and retail enthusiasm waning, the stock’s volume has dried up.
While Saylor’s move gives management more financial flexibility, it also raises concerns about dilution. Investors now have to balance: is the long-term Bitcoin bet worth the near term pressure on the stock?
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