Bitcoin News Today: MicroStrategy Revises Stock Issuance Policy Amid Bitcoin Buying Slowdown

Michael Saylor’s MicroStrategy, known for its aggressive Bitcoin accumulation strategy, has reversed its recent policy that restricted new stock issuance under a 2.5x premium to its modified net asset value (mNAV) [1]. The company now allows equity issuance “when otherwise deemed advantageous to the company,” a significant shift from the strict financing guidelines it announced in July [2]. This decision comes as MicroStrategy’s Bitcoin purchasing pace has slowed to just 430 BTC per week, down sharply from the thousands of Bitcoin it acquired weekly earlier this year [3].

The change in strategy appears to be a response to growing financial pressure. Over the last seven days, MicroStrategy spent $51.4 million to purchase 430 Bitcoin, and the week before it only acquired 115 BTC [4]. The slowdown highlights a waning ability to secure funding through its preferred stock and common equity offerings, a key pillar of its capital structure. Short sellers, led by Jim Chanos, have been critical of the company’s financing model, questioning whether demand for its preferred stock can replace the revenue from traditional share sales [5].

This shift in capital strategy coincides with a 22% drop in MicroStrategy’s common shares since hitting a record high in November 2024, while Bitcoin itself has risen roughly 23% in the same period [6]. The company currently holds 629,376 BTC, valued at approximately $72 billion, but the reduced purchasing pace suggests potential constraints in its capital-raising mechanisms [7]. Analyst Brian Dobson of Clear Street noted that the revised guidance provides greater flexibility and could allow the company to be more opportunistic in its Bitcoin purchases [8].

The reversal has also emerged amid broader scrutiny of corporate Bitcoin strategies. Multiple class-action lawsuits have been filed against MicroStrategy, with law firm Pomerantz LLP representing shareholders who purchased stock between April 30, 2024, and April 4, 2025 [9]. These legal challenges add to a landscape where corporate treasuries are increasingly diversifying into alternative assets, with Ethereum-based companies raising billions for Ether accumulation [10].

The evolving corporate treasury landscape reflects growing competition for capital in the crypto space. While MicroStrategy’s Bitcoin-only strategy has yielded over 3,000% in returns since mid-2020, the broader corporate Bitcoin movement faces structural concerns. Research firm Sentora has warned that most companies involved in the $215 billion corporate Bitcoin strategy “won’t survive the credit cycle” due to structural vulnerabilities in rising-rate environments [11]. The firm’s analysis highlights a critical flaw: idle Bitcoin on a corporate balance sheet is not a scalable strategy in a rising-rate world, as most companies are unprofitable or heavily dependent on mark-to-market gains [12].

Ethereum treasury strategies, by contrast, benefit from yield-generating staking. Companies like SharpLink Gaming have leveraged this to generate substantial returns, with the firm staking nearly 100% of its Ethereum holdings and earning 1,326 ETH in cumulative rewards [13]. This capability has attracted interest from Wall Street, with major Ethereum treasury companies recently gathering in Manhattan to pitch $22 billion worth of corporate Ether holdings [14]. The emergence of multi-asset corporate treasuries signals a broader shift in how corporations approach digital assets.

Despite these challenges, MicroStrategy remains a dominant player in the corporate Bitcoin space. However, its recent policy shift indicates a more flexible and reactive capital strategy, one that prioritizes liquidity and operational adaptability over rigid adherence to premium thresholds. The company’s next moves will likely depend on how effectively it can balance capital inflows with Bitcoin purchasing opportunities in a tightening market.

Source: [1][2][3][4][5][6][7][8][9][10][11][12][13][14]

[1] Saylor Reverses Course on Stock Sales as Strategy’s Premium to Bitcoin Holdings Falls, https://cryptonews.com/news/saylor-reverses-course-on-stock-sales-as-strategys-premium-to-bitcoin-holdings-falls/