Bitcoin News Today: MicroStrategy Removes 2.5x mNAV Floor for Equity Issuance Amid Bitcoin Strategy Shift

MicroStrategy has revised its at-the-market equity issuance policy, removing the prior 2.5x minimum market net asset value (mNAV) threshold that once restricted the issuance of common shares. The company can now issue equity below that level when it deems such activity advantageous for Bitcoin acquisition [1]. This shift in capital flexibility is a direct response to the narrowing mNAV premium, which has dropped from 3.4x in November 2024 to 1.6x by August 2025, indicating waning investor enthusiasm for the stock as a Bitcoin proxy [3].

The adjustment reflects the company’s evolving capital management strategy amid a declining arbitrage opportunity between its share price and the rising value of Bitcoin. From November 2024 to August 2025, the firm’s stock fell 22% while Bitcoin climbed 23%, diminishing the cost advantage of using equity to purchase Bitcoin [1]. The reduced premium has limited the effectiveness of the company’s preferred financing model, prompting the updated issuance rules to maintain liquidity and continue Bitcoin purchases [2].

The new policy has drawn mixed reactions from the market and analysts. Some view the move as a strategic adaptation to shifting capital conditions, offering MicroStrategy greater flexibility to acquire Bitcoin even during periods of weak equity performance. Others, however, highlight concerns about the dilutive impact of increased stock issuance and the structural challenges of maintaining investor confidence in the company’s role as a Bitcoin proxy [2]. Analysts such as James Chanos have pointed to the declining demand for preferred shares and the growing preference for alternative crypto exposure vehicles like ETFs [3].

MicroStrategy’s Bitcoin acquisition activity has also slowed in recent weeks, raising questions about the sustainability of its treasury model. In the week ending August 17, 2025, the company purchased 430 Bitcoin for $51.4 million, a significant decline compared to prior weeks [1]. The reduced pace of buying suggests a tightening capital environment and a reassessment of the firm’s ability to execute large-scale Bitcoin acquisitions through equity dilution [2].

The firm’s revised policy aligns with a broader trend in corporate capital management where digital assets are increasingly integrated into long-term financing and investment strategies. However, the effectiveness of MicroStrategy’s approach will depend on market conditions, the demand for Bitcoin-related investment vehicles, and its ability to maintain relevance in a competitive and rapidly evolving crypto landscape [3].

Sources:

[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/