MicroStrategy’s MSTR Stock Liquidity Eases as Price Plunges to April Lows – A Buying Opportunity?

MicroStrategy's ironclad trading restrictions loosen just as shares crater to 5-month lows. Is this corporate foresight—or forced capitulation?

Wall Street's favorite crypto proxy now trades at levels not seen since Bitcoin was below $60K. The 'HODL forever' playbook gets its first real stress test.

Meanwhile, short sellers circle what they call 'a leveraged Bitcoin ETF in corporate drag.' The market's verdict? A staggering 30% haircut since June.

One thing's certain: When your stock becomes a volatility derivative of a volatility derivative, even Michael Saylor's PowerPoints can't stop the bleed.

Investors reaction vary

Strategy’s policy shift has drawn mixed reactions from investors in the firm.

James Chanos, a famous short seller who has taken a position against the Saylor-led firm, criticized the change, claiming it weakens protections against shareholder dilution and signals limited demand for the company’s preferred shares.

Meanwhile, other market experts see the adjustment as a tactical move that WOULD help Strategy acquire more Bitcoin.

Cern Basher, chief investment officer at Brilliant Advice, noted that as long as mNAV stays above 1.0, issuing new equity can increase Bitcoin per share, benefiting existing shareholders.

According to Basher:

“If Strategy is now able to issue new equity at mNAVs all the way down to 1.0, they effectively have two methods (issuing preferred stock & common stock) to acquire more Bitcoin (each one helping the other). Think of it as having two separate faucets to fill up a bathtub – allowing you to fill up the tub faster.”

However, he noted that while “Strategy runs a risk of acquiring too much Bitcoin too fast,” the company’s shareholders should want it to become the world’s financial fortress quickly because this would open them up to more market opportunities.