Michael Saylor Doubles Down: MicroStrategy Eases Stock Sale Limits to Fuel Bitcoin Gambit
MicroStrategy just ripped up its own rulebook—and Wall Street's eyebrows are hitting the ceiling.
The enterprise software-turned-crypto juggernaut loosened stock sale restrictions this week, clearing the path for more aggressive Bitcoin acquisitions. Because when your stock's become a leveraged BTC ETF, why bother with pesky shareholder protections?
The Naked Shorts Are Fuming
Saylor's latest power move lets MicroStrategy issue up to $5 billion in new shares—a staggering 400% increase from previous limits. The market reacted like you'd expect: BTC maximalists cheered while traditionalists muttered about 'reckless dilution.'
All-In on Orange
This isn't corporate hedging—it's a $15 billion bet that fiat currencies will keep inflating into oblivion. The company now holds over 250,000 BTC, making it the largest corporate holder by a country mile. Treasury secretaries hate this one weird trick.
As the Fed keeps printing, Saylor keeps stacking. Whether this ends in champagne toasts or congressional hearings remains to be seen—but nobody can accuse him of thinking small.
Strategy’s stock issuance rules shift
Previously, the company had promised not to issue new shares if its stock traded at less than 2.5 times the value of its bitcoin holdings, a buffer Saylor termed the “mNAV premium.” That limit was intended to reassure investors concerned about dilution. Exceptions were only allowed to cover debt interest or preferred equity dividends.
Under the updated policy, Strategy will permit stock issuance below the 2.5x threshold “when otherwise deemed advantageous to the company.” Analysts like Brian Dobson of Clear Street said the additional language allows Saylor to be more opportunistic in financing Bitcoin purchases.
The shift comes as demand for the firm’s preferred stock program, a novel perpetual equity product Saylor unveiled in July, faces uncertainty. Investor appetite has been tested by falling premiums on Strategy’s shares and increasing competition from Bitcoin ETFs and other crypto-treasury firms.
Slower purchases, strong holdings
Strategy’s pace of Bitcoin accumulation has moderated. The company disclosed on Aug. 18 that it bought 430 Bitcoin for $51.4 million in the prior week, following a 155 BTC purchase the week before. In total, Strategy now holds 629,376 BTC, acquired at an average price of $73,320. With Bitcoin trading NEAR all-time highs around $119,666, the firm sits on more than $26 billion in unrealized gains.
Despite these gains, Strategy’s stock has fallen 22% since reaching a record in November, lagging Bitcoin’s 23% rally over the same period. Short sellers like Jim Chanos have questioned whether the firm’s four series of preferred stock offerings can offset reduced at-the-market equity sales.
The latest revision shows how quickly Saylor’s bold financing strategy is being tested. While easing restrictions may reassure the company’s ability to keep building its Bitcoin reserves, it also highlights investor concerns about dilution and long-term sustainability.
