Bitcoin News Today: MicroStrategy Eases Stock Sale Rules Amid Shrinking Bitcoin Premium

Generated by AI AgentCoin World
Monday, Aug 18, 2025 6:08 pm ET1min read
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Aime RobotAime Summary

- MicroStrategy CEO Michael Saylor revised stock issuance rules to allow share sales below 2.5x Bitcoin NAV, enhancing capital flexibility amid shrinking stock premiums.

- The move follows a 22% stock price drop vs. 23% Bitcoin gains since November 2024, reducing the company's ability to fund large Bitcoin purchases through high premiums.

- Bitcoin acquisitions slowed to 430 units/week ($51.4M) in August 2025 from 155 units previously, as analysts note relaxed 2.5x mNAV thresholds and reduced preferred share demand.

- Saylor's strategy shift reflects growing competition in corporate Bitcoin holdings, aiming to sustain capital inflows while maintaining $72B Bitcoin portfolio leadership.

Michael Saylor, CEO of MicroStrategy, has adjusted the company’s stock issuance guidelines, allowing it to sell common shares even if the stock price falls below 2.5 times the value of its

Bitcoin
holdings. Previously, the company had pledged not to issue new shares under this threshold—referred to as the “mNAV premium”—except for specific needs like paying debt interest or preferred dividends. The updated rule now permits share sales in situations “deemed advantageous to the company,” granting MicroStrategy greater flexibility in raising capital [1].

The change comes as the premium between MicroStrategy’s stock and its Bitcoin net asset value has significantly narrowed. Since November 20, 2024, MicroStrategy’s shares have dropped 22%, while Bitcoin has risen 23% during the same period. This decline has reduced the company’s ability to capitalize on high premiums to fund large Bitcoin purchases. In the week ending August 17, 2025, MicroStrategy bought 430 Bitcoin for $51.4 million, compared to 155 Bitcoin the previous week. The company now holds around $72 billion in Bitcoin, but its pace of accumulation has clearly slowed [1].

Brian Dobson, managing director at Clear Street, noted that the revised guidance allows MicroStrategy to be more strategic in its Bitcoin purchases when favorable market opportunities arise [1]. Meanwhile, short seller Jim Chanos observed that the company is now purchasing Bitcoin at a significantly lower rate, partly due to a lack of demand for preferred shares, and that the 2.5x mNAV floor appears to be relaxed [1].

Since 2020, MicroStrategy has transformed from a software company into one of the largest institutional holders of Bitcoin, leveraging stock premiums to fund its crypto strategy. However, as competition from other firms and Bitcoin-focused investment vehicles grows, Saylor is adapting his approach to sustain capital inflows and continue his vision. The updated stock sale rules reflect this evolution, as the company seeks to maintain its leadership in the corporate Bitcoin space amid shifting market dynamics [1].

Source: [1] Michael Saylor Eases Stock Sale Rules as Bitcoin Premium Shrinks (https://www.cryptotimes.io/2025/08/19/michael-saylor-eases-stock-sale-rules-as-bitcoin-premium-shrinks/)