Michael Saylor’s Strategy Inc. has revised its financing approach, loosening stock sale restrictions only weeks after vowing stricter controls.
Bloomberg reported on Aug. 18 that the shift will give the Bitcoin-focused firm more flexibility to raise capital as its share premium over Bitcoin holdings continues to shrink.
Strategy Alters Stock Sale Rules
Previously, the company had pledged not to issue new shares when its stock traded below 2.5 times the value of its Bitcoin holdings—a buffer Saylor labeled the “mNAV premium.” The rule was designed to ease investor concerns about dilution, with exceptions limited to covering debt interest or preferred equity dividends.
The revised policy, however, now allows share issuance below the 2.5x threshold “when otherwise deemed advantageous to the company.” Analysts such as Brian Dobson of Clear Street say the added flexibility gives Saylor more room to raise funds opportunistically for Bitcoin purchases.
The adjustment comes as demand for the firm’s new preferred stock program—a perpetual equity product launched in July—remains uncertain. Investor appetite has been weighed down by shrinking premiums on Strategy’s shares and rising competition from Bitcoin ETFs and other crypto-treasury players.
Steadier Buying, Solid Reserves
Strategy has slowed its Bitcoin accumulation. The company reported on Aug. 18 that it purchased 430 BTC for $51.4 million over the past week, following a 155 BTC buy the week prior. Strategy now holds a total of 629,376 BTC at an average price of $73,320. With Bitcoin trading near record highs around $119,666, the firm is sitting on more than $26 billion in unrealized gains.
Despite this, Strategy’s stock has dropped 22% since its November peak, underperforming Bitcoin, which has gained 23% over the same period. Short sellers, including Jim Chanos, have questioned whether the firm’s four preferred stock offerings can make up for a slowdown in at-the-market equity sales.
The latest policy shift underscores how quickly Saylor’s aggressive financing strategy is being tested. While relaxing restrictions may support the company’s ability to continue growing its Bitcoin reserves, it also spotlights ongoing investor concerns about dilution and the long-term viability of the approach.
