Due to the overall decline of crypto custody companies and the drop in Bitcoin prices, Michael Saylor's strategy company (MSTR) stock price has fallen to its lowest point in four months. This decline is also related to Saylor's announcement to relax stock issuance restrictions.
Since Monday, the stock price has dropped by 8%, while Bitcoin's price has also fallen by 8.6% since it broke the new high of $124,128 last Thursday.
Saylor lowers MSTR's selling threshold to buy Bitcoin
On Monday, Saylor announced on the X platform an update to the MSTR equity issuance guidelines, providing greater flexibility for capital market operations, which includes the ability for the company to issue shares below the previous restrictions to repay debt or for other purposes.
This update has caused some shareholders to express dissatisfaction, citing a stark contrast with the second-quarter financial report. However, some believe this move is positive for Bitcoin and may allow MSTR to purchase more Bitcoin.
Saylor's statement has sparked divisions within the community
Trader Kale Abe stated that Saylor has clearly expressed the intention to purchase a large amount of Bitcoin. According to SaylorTracker data, the company currently holds 629,376 Bitcoins, worth approximately $7.134 billion.
Another commenter, Josh Man, stated that Saylor had promised not to sell shares below 2.5 times net asset value, which is not the case now.
The company's strategy is considered more feasible, as the current mNAV is only 1.55, while the original policy of 2.5 times was too strict.
Over the past month, other publicly traded companies holding Bitcoin, such as MARA and COIN, have also seen declines in their stock prices.
