Bitcoin News Today: MicroStrategy Lowers Stock Issuance Threshold to Boost Bitcoin Buying

MicroStrategy has revised its at-the-market (ATM) equity issuance policy, allowing the company to issue common stock when its stock price is trading below 2.5 times its modified net asset value (mNAV). This change, initially disclosed on August 9, provides the firm with greater flexibility in raising capital for further Bitcoin purchases, particularly in scenarios where the company deems such action strategically advantageous [1]. The updated guidance was reaffirmed in subsequent reports, including a statement on August 10 and a further confirmation on August 17, emphasizing the company’s focus on optimizing capital deployment amid market volatility [2][3].

The policy adjustment aligns with MicroStrategy’s long-term strategy of leveraging equity to fund Bitcoin acquisitions. By lowering the financial threshold for share issuance, the firm can access capital at more favorable valuations, potentially supporting continued accumulation of its digital asset portfolio. Notably, MicroStrategy added over $51 million in Bitcoin in the week following the announcement, suggesting active execution of its revised funding approach [1].

Market reactions to the policy shift have been mixed. Supporters argue that the change demonstrates confidence in Bitcoin’s long-term value and allows the company to secure capital at a lower cost, potentially reinforcing Bitcoin’s upward trajectory. Conversely, some market participants express concerns about the dilutive effect of increased equity issuance, particularly as MicroStrategy’s Bitcoin premium has declined from 3.4 times to 1.6 times since November 2024 [1]. Analysts have observed that the updated policy could enable the firm to increase its Bitcoin exposure even in periods of weak equity performance, deviating from conventional capital structure practices that avoid issuing shares when stock prices are below key valuation metrics [2].

This development has drawn attention from institutional investors and market observers, especially as Bitcoin remains subject to fluctuation in a broader market context. While general financial market trends, including earnings performance and investor sentiment, continue to influence asset prices [4], the specific flexibility granted to MicroStrategy in its equity issuance policy remains a focal point for those tracking its crypto-focused capital strategy. The firm’s approach underscores a broader shift in corporate capital management, where digital assets are increasingly integrated into long-term investment and financing frameworks.

Source: [1] FXStreet. (2025, August 9). Michael Saylor's Strategy Added $51M of Bitcoin Last Week. https://www.fxstreet.com/cryptocurrencies/news/michael-saylors-strategy-added-51m-of-bitcoin-last-week-202508181423

[2] CoinCodex. (2025, August 10). Strategy and Metaplanet Add Over $145 Million in Bitcoin Amid Market Dip. https://coincodex.com/article/71632/strategy-and-metaplanet-add-over-145-million-in-bitcoin-amid-market-dip/

[3] MLQ.ai. (2025, August 17). Stocks. https://mlq.ai/news/

[4] AInvest. (2025, August 16). Bitcoin News Today: MicroStrategy Eases Stock Issuance. https://www.ainvest.com/news/bitcoin-news-today-microstrategy-eases-stock-issuance-rules-boost-bitcoin-buying-flexibility-2508/