Strategy (formerly MicroStrategy) has just undergone a significant stock drop after changing its stock issuance policy to increase Bitcoin purchases.
This new strategy has caused many investors to worry, especially when Bitcoin's price drops and the company's stock hits a 4-month low after previously rising sharply.
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Strategy's stock has dropped to its lowest level in 4 months, losing more than 21% in the last month.
The expanded stock issuance policy, allowing issuance below 2.5 times the net asset value (mNAV), has caused outrage among investors.
The strategy continues to buy Bitcoin at high prices, holding over 629,000 BTC worth approximately $71.3 billion, even as the broader cryptocurrency market shows signs of correction.
Why did Strategy's stock drop sharply to its lowest level in 4 months?
Strategy's stock closed down 7.43% to $336.57 on Tuesday, continuing to decline slightly in after-hours trading. In total, this stock has lost more than 21% of its value in the last 30 days.
This coincides with the decline of Bitcoin from its record level of $124,000 to $113,000, a drop of about 8.6% in just a few days. This puts significant pressure on Strategy investors, as both the company's stock and main assets plummet.
What new stock issuance policy has caused negative reactions?
The core of the crisis is the change in the Automatic Stock Issuance Policy (ATM). Previously, Strategy committed not to issue below 2.5 times the net asset value (mNAV), unless to pay interest on debt or dividends. However, the new policy allows for stock issuance below that level when necessary to pay interest, preferred stock dividends, or when the company finds it beneficial.
This has led many investors to believe that making a promise but changing it too quickly undermines trust and creates red flags about the company's direction.
"The promise not to issue stock below 2.5 mNAV in the recent press conference is now changed, which is a very bad signal for investors."
Thorleif Egeli, cryptocurrency investor, August 2025
How did investors react to the new policy?
Many opinions on social media express dissatisfaction, especially when the initial commitment is changed just weeks later. An investor who bought shares due to the promise to maintain the price was disappointed to see the company issuing below that threshold.
Conversely, some traders view the additional stock issuance as a positive move – clearly, Michael Saylor wants to increase Bitcoin holdings. According to them, this is a signal that the company remains determined to hold on and seize market opportunities.
How does Strategy continue to buy Bitcoin at such high prices?
Despite facing opposition, Strategy continues to increase its Bitcoin holdings. Recently, the company announced the purchase of an additional $51 million worth of Bitcoin, in the context of Bitcoin prices reaching record highs. The total amount of Bitcoin that Strategy currently holds is 629,376 BTC, equivalent to approximately $71.3 billion.
This shows that Michael Saylor's strategy remains committed to long-term Bitcoin accumulation, despite short-term market volatility.
Is the drop in Strategy's stock related to the overall trend in the cryptocurrency market?
The price drop affects not only Strategy but also extends to many other cryptocurrency-related stocks such as Galaxy Digital down 10%, Coinbase down nearly 6%, Robinhood down over 6%, along with many others also under pressure.
The Nasdaq Composite Index also fell 1.46% on the same day, reflecting overall pressure on the financial market. This is a serious testing phase for Strategy's aggressive Bitcoin investment strategy.
"Strategy has become a leading symbol for businesses investing in Bitcoin. However, as the stock continues to face pressure and investor confidence declines, this strategy faces its biggest challenge yet."
Cryptocurrency Finance Expert (2025)
Frequently Asked Questions
Why did Strategy's stock drop sharply last month?
Due to the simultaneous decline of Bitcoin and the company's change in stock issuance policy, investor confidence has been shaken.
How does the new stock issuance policy affect investors?
The policy allowing issuance below 2.5 times mNAV makes investors concerned about dilution of shares and poor governance.
How much Bitcoin is Strategy holding?
Currently, Strategy holds 629,376 BTC, worth approximately $71.3 billion at the latest market price.
Has Strategy's Bitcoin buying strategy changed after the price drop?
No, they are still aggressively buying in, despite Bitcoin's current price being high.
How does the cryptocurrency market situation affect Strategy's stock?
The volatility of Bitcoin and other cryptocurrency stocks simultaneously puts downward pressure on Strategy's stock.
Source: https://tintucbitcoin.com/michael-saylor-co-tiep-tuc-mua-bitcoin/
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