Bitcoin News Today: Investor Revolt Erodes Saylor’s Bitcoin Premium Bet

Michael Saylor’s Strategy Inc., formerly MicroStrategy, has continued its aggressive Bitcoin accumulation strategy, acquiring 4,048 BTC for $449.3 million in its latest purchase, raising the firm’s total Bitcoin holdings to 636,505 BTC with an aggregate cost of $46.95 billion [2]. This move underscores the company’s long-standing commitment to Bitcoin as a core treasury reserve asset. Despite these purchases, the company’s stock has faced significant volatility, with shares down 15% in August, eroding much of the premium once associated with its Bitcoin holdings [1].

The decline in Strategy’s stock multiple, now at 1.57 times its modified net asset value (mNAV), has sparked investor concerns about the sustainability of the corporate-treasury model Saylor pioneered. This model, which involves raising capital through debt and equity to fund Bitcoin purchases, inspired a wave of similar firms. Collectively, these companies hold over $108 billion, or 4.7% of Bitcoin’s total supply [1]. Jake Ostrovskis, principal analyst on Wintermute’s OTC Desk, attributed the decreasing premium to rising competition and alternative exposure avenues for traders [1].

Strategy’s recent capital-raising efforts also highlight the challenges it faces. A preferred stock offering raised only $47 million—far below Saylor’s expectations—prompting a return to common-share issuance, despite prior commitments to limit dilution [1]. The shift has drawn criticism from investors who view it as a breach of trust. This dynamic has created a negative feedback loop: falling stock prices weaken the company’s ability to fund further Bitcoin purchases, which in turn further erode investor confidence [1].

The broader Bitcoin corporate-treasury sector is under pressure, with nearly a third of publicly traded firms holding Bitcoin trading below the value of their reserves [1]. Smaller firms, in particular, face liquidity constraints and interest burdens from convertible notes. Capriole Investments’ Charles Edwards warned that a 50% drop in Bitcoin’s price could trigger a widespread reevaluation of corporate treasury strategies [1].

Meanwhile, new entrants in the market have diluted Strategy’s influence. Over the past year, politically connected figures and influencers launched crypto ventures through SPACs and reverse mergers, many of which lack the scale and liquidity to withstand a downturn [1]. The rise of spot Bitcoin ETFs has also shifted investor preferences, offering exposure without corporate governance risks or dilution concerns [1]. Additionally, attention is shifting toward altcoins like Ether and Solana, with Ether-focused treasuries committing over $19 billion [1].

Strategy’s recent trading activity reflects broader market dynamics. Despite its large Bitcoin purchases, the company’s stock has not driven price action in the cryptocurrency. Corporate treasurer Shirish Jajodia explained that the firm conducts most of its BTC acquisitions through over-the-counter (OTC) transactions, minimizing price impact given Bitcoin’s $50 billion daily trading volume [2].

On the retail and institutional front, the week of September 3 saw significant inflows into Bitcoin ETFs. A total of $328.94 million flowed into spot Bitcoin ETFs, with Fidelity’s fund absorbing the largest portion at $129.78 million [5]. In contrast, Ethereum ETFs faced outflows totaling $222.49 million, indicating diverging investor sentiment across crypto assets [5].

Source: [1] Michael Saylor hit by market revolt as his Bitcoin premium sinks (https://fortune.com/crypto/2025/08/28/michael-saylor-strategy-microstrategy-bitcoin-premium-sinks/) [2] Michael Saylor's Strategy Scoops 4,048 BTC - Yahoo Finance (https://finance.yahoo.com/news/michael-saylor-strategy-scoops-4-145409042.html) [5] 102706% Profit Triggers Epic Satoshi-Era Bitcoin Whale Awakening (https://u.today/102706-profit-triggers-epic-satoshi-era-bitcoin-whale-awakening)