Bitcoin News Today: MicroStrategy Opens Floodgates to Share Sales as Stock Hits 4-Month Low

MicroStrategy (MSTR) shares fell to a four-month low amid a broader decline in the cryptocurrency market and uncertainty surrounding Federal Reserve policy. On August 19, the stock closed at $336, a 7.8% drop for the session, following a sharp sell-off in crypto-related equities as Bitcoin (BTC) prices dipped to $113,000 [1]. The decline was part of a broader market reaction to risk-off sentiment, with other digital asset-focused firms also experiencing significant losses [2]. As the largest corporate holder of BTC, with 628,791 coins, MicroStrategy’s performance closely mirrors movements in the cryptocurrency market [3].

The stock’s drop reflects a broader trend of underperformance across the sector. Over the past month, MSTR shares have declined 14.7%, lagging behind the Zacks Computer - Software industry and the Zacks Computer and Technology sector, which posted returns of 0.3% and 3%, respectively [2]. Other BTC-holding companies, such as Marathon Digital Holdings (MARA), Riot Platforms (RIOT), and Tesla (TSLA), have also seen their shares fall in line with the broader slump. Tesla, for instance, rose 2.1% over the same period, outpacing MicroStrategy and highlighting the uneven performance of firms with crypto assets on their balance sheets [2].

One of the key developments contributing to the stock’s volatility was a revised equity issuance policy announced by CEO Michael Saylor on August 18. Under the new guidelines, MicroStrategy is now authorized to issue shares at any market-to-net asset value (mNAV) multiple deemed strategically advantageous, a significant shift from previous restrictions that limited such sales to times when mNAV was above 2.5. As of the announcement date, MicroStrategy’s mNAV was at 1.55, far below the prior threshold, raising concerns about shareholder dilution [3]. The move has been met with mixed reactions from investors, with some criticizing it as a reversal of prior commitments and others viewing it as a strategic advantage in a volatile market [4].

The company’s ability to raise capital through preferred equity offerings has been a key growth driver. Year to date, MicroStrategy has raised $10.7 billion in equities and $7.6 billion in fixed income securities, including convertible notes and preferred equity instruments such as STRK, STRF, STRD, and STRC [2]. These instruments offer varying dividend yields and conversion terms, with STRD and STRF boasting effective yields of 11.9% and 8.7%, respectively. The capital raised has been directed toward further Bitcoin accumulation and strengthening the company’s financial position [2].

Looking ahead, MicroStrategy expects to see a Bitcoin yield of 30% and $20 billion in gains if BTC reaches $150,000 by year-end. As of the end of the second quarter, Bitcoin-related gains stood at $13.2 billion year to date, with a 25% yield through the first half of 2025 [2]. The company has projected operating income of $34 billion, net income of $24 billion, and earnings of $80 per share for 2025 under this price assumption, significantly outperforming peers such as Riot Platforms and Marathon Digital, which posted net losses during the same period [2].

Source: [1] Strategy Tumbles to 4-Month Low as Crypto Stocks, Digital ... (https://www.coindesk.com/markets/2025/08/19/strategy-tumbles-to-4-month-low-as-crypto-stocks-digital-asset-treasuries-sink) [2] Strategy Falls 15% in a Month: Hold or Fold the MSTR Stock? (https://finance.yahoo.com/news/strategy-falls-15-month-hold-162300910.html) [3] MicroStrategy Stock Hits 4-Month Low Amid Share ... (https://bitbo.io/news/microstrategy-stock-share-issuance/) [4] Strategy eases MSTR stock sale limits as shares hit lowest ... (https://cryptoslate.com/strategy-eases-mstr-stock-sale-limits-as-shares-hit-lowest-level-since-april/)