Shares of MSTR, managed by Michael Saylor, have reached a low since April. This follows a drop in Bitcoin and changes to the stock issuance strategy.
MSTR's Decline and Its Causes
MSTR fell about 8% this week, landing near $336. Meanwhile, Bitcoin slid from a record $124,128 to around $113,000. This timing has spooked investors as other Bitcoin treasury companies also suffered. Galaxy, Coinbase, and Riot Platforms posted double-digit declines over the past month, highlighting the broad stress across the crypto sector.
Investor Division Over Saylor's New Strategy
The reaction to Saylor's decision to loosen restrictions on issuing new MSTR shares has split the community. Some traders feel betrayed, claiming they invested under the belief MSTR would not sell below the strict 2.5 mNAV rule. Others argue the original rule was too rigid, as the stock currently trades near 1.55 mNAV. Supporters of the change signal possible accumulation of more Bitcoin, but the sharp 21% monthly drop raises doubts about the timing of this decision.
Bitcoin's Impact on MSTR Strategy
MSTR's fate remains closely linked to Bitcoin's price. As the largest corporate holder, with more than 629,000 BTC worth over $71 billion, every move in Bitcoin ripples through the stock. When Bitcoin soared last week, MSTR briefly rallied, but as BTC plunged back toward $113,000, shares tumbled with it. Analysts note the current weakness reflects both macro pressures and Saylor's new issuance strategy.
Looking ahead, the market will watch how Saylor executes his updated playbook. If new MSTR issuance funds more Bitcoin buys, loyalists may reward this bold bet. However, if dilution grows without boosting returns, pressure on the stock could intensify.
