report<\/a> by Bloomberg, the change gives the Bitcoin-heavy company greater flexibility to raise funds as its share premium over Bitcoin (BTC) holdings narrows.<\/p>\nStrategy\u2019s stock issuance rules shift<\/h2>\n
Previously, the company had promised not to issue new shares if its stock traded at less than 2.5 times the value of its Bitcoin holdings, a buffer Saylor termed the \u201cmNAV premium.\u201d That limit was intended to reassure investors concerned about dilution. Exceptions were only allowed to cover debt interest or preferred equity dividends.<\/p>\n
Under the updated policy, Strategy will permit stock issuance below the 2.5x threshold \u201cwhen otherwise deemed advantageous to the company.\u201d Analysts like Brian Dobson of Clear Street said the additional language allows Saylor to be more opportunistic in financing Bitcoin purchases.<\/p>\n
<\/p>\n
The shift comes as demand for the firm\u2019s preferred stock program, a novel perpetual equity product Saylor unveiled in July, faces uncertainty. Investor appetite has been tested by falling premiums on Strategy\u2019s shares and increasing competition from Bitcoin ETFs and other crypto-treasury firms.<\/p>\n
Slower purchases, strong holdings<\/h2>\n
Strategy\u2019s pace of Bitcoin accumulation has moderated. The company disclosed on Aug. 18 that it bought 430 Bitcoin for $51.4 million in the prior week, following a 155 BTC purchase the week before. In total, Strategy now holds 629,376 BTC, acquired at an average price of $73,320. With Bitcoin trading near all-time highs around $119,666, the firm sits on more than $26 billion in unrealized gains.<\/p>\n
Despite these gains, Strategy\u2019s stock has fallen 22% since reaching a record in November, lagging Bitcoin\u2019s 23% rally over the same period. Short sellers like Jim Chanos have questioned whether the firm\u2019s four series of preferred stock offerings can offset reduced at-the-market equity sales.<\/p>\n
The latest revision shows how quickly Saylor\u2019s bold financing strategy is being tested. While easing restrictions may reassure the company\u2019s ability to keep building its Bitcoin reserves, it also highlights investor concerns about dilution and long-term sustainability.<\/p>\n
<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"
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