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- Zafar Naik
Zafar Naik
- Reviewed by:
Qadir AKQadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Aug 20, 2025 11:23 UTC
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Strategy Stock Hits 4-Month Low: Will Michael Saylor Keep Buying Bitcoin?
MicroStrategy stock fell to a four-month low after easing rules on share issuance for Bitcoin purchases.
Investors criticized Michael Saylor for reversing earlier guidance, sparking backlash over dilution concerns.
Despite the drop, MicroStrategy added $51M in Bitcoin, lifting its holdings to 629,376 BTC worth $71B.
Strategy (formerly MicroStrategy) is once again making headlines – but not for great reasons. The company’s stock fell to its lowest level since April after Michael Saylor announced a policy change that gives the firm more room to issue shares and buy more Bitcoin.
The moves are now sparking debate. Here are the details!
Stock Hits Four-Month Low
On Tuesday, MSTR closed down 7.43% at $336.57, with another small drop in after-hours trading. The stock has now lost more than 21% in the past month.
The fall came just as Bitcoin slipped from a record $124,000 to $113,000, an 8.6% pullback in a few days. For Strategy, the timing was brutal – a weaker Bitcoin and an upset shareholder base.
The Rule Change That Sparked It
At the center of the selloff is Strategy’s updated Equity ATM Guidance.
Back in July, the company said it would not issue new shares below 2.5 times its net asset value (mNAV), except to cover debt interest or dividends. But this week, Saylor changed things.
The new guidance allows the company to issue shares even under that 2.5x mark “to pay interest on debt obligations, fund preferred equity dividends, and when otherwise deemed advantageous to the company.”
That single change triggered a wave of frustration among investors.
Investors Call It a Red Flag
The backlash came quickly on X. One user wrote: “Just a couple of weeks ago at the earnings call, it was announced no issuance below 2.5mNAV. Why the change? Promising investors one thing, then changing very soon after, is not a good sign in my opinion.”
Another former shareholder added: “The head of the company said he wouldn’t sell below 2.5 mNAV, so I bought. … And then he sold below mNAV 2.5.”
Some traders, however, took the opposite view. One pointed out bluntly: “He’s literally telling you straight up he’s gonna buy a… ton more BTC.”
Still Buying at the Top
Despite the controversy, Strategy hasn’t slowed down. Just a day earlier, the firm announced another $51 million Bitcoin purchase, even as BTC traded at record highs.
The company now holds 629,376 BTC, worth about $71.3 billion. Strategy’s entire identity is tied to Bitcoin and Saylor seems determined to keep doubling down.
A Wider Crypto Selloff
It wasn’t just Strategy in the red. Other crypto-linked stocks also dropped on Tuesday: Galaxy Digital fell 10%, Coinbase slipped nearly 6%, Robinhood lost over 6%, and Bullish and Circle also slid. The Nasdaq Composite closed down 1.46%.
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Strategy has built its name as the poster child for corporate Bitcoin adoption. But with its stock under pressure and trust issues growing among investors, Saylor’s aggressive strategy faces its toughest test yet.
FAQs
MicroStrategy holds 629,376 BTC, worth approximately $71.3 billion, making it the largest corporate Bitcoin holder.
MSTR stock fell due to a policy change allowing share issuance below a key asset value threshold and a concurrent drop in Bitcoin’s price.
Yes, Galaxy, Coinbase, Robinhood, Bullish, and Circle all slid alongside MSTR.
Yes 
No 
