In what can only be described as a financial rollercoaster operated by caffeine-addled hedge funders and a GPS with “Bitcoin” permanently set as the destination, Strategy has once again flooded the market with stock shares-to buy more Bitcoin, naturally.
When Policy Changes Faster Than a Politician’s Promise
On August 18th, Strategy apparently looked into the economic void and thought, “You know what this company needs? A new equity policy.” Within days, it went from issuing zero dollars in fresh stock on the third, to tossing around $18 million on the tenth, to casually burning through $51 million by the seventeenth-like someone realizing their fridge is empty at 2 AM and deciding to order groceries for a month. Then came the grand finale: nearly $360 million raised over a single week after they scrapped a key promise about not diluting shareholder value. Critics are not amused.
Strategy running out of steam?
Before Aug 18, almost no new money came into $MSTR:
Aug 3: $0
Aug 10: ~$18M
Aug 17: ~$51MBut after they dropped the “no dilution below 2.5x mNAV” promise, $359M was raised by issuing new shares (see tweet below).
Policy changed.…
– Maartunn (@JA_Maartun) August 26, 2025
The system now ties stock sales to market net asset value (mNAV), which essentially compares the stock’s price to its Bitcoin backing. If shares trade at more than four times mNAV, look out below-fresh stock flows like confetti toward Bitcoin purchases. Between 2.5 and 4 times, they’ll trickle in more cautiously, like waiters at an expensive restaurant checking if you really want that extra cheese. And under 2.5? Stock sales go toward debt or dividends. If it falls under 1x mNAV, Strategy may even borrow cash to buy back stock-pulled from the dusty playbook of Desperate Corporate Maneuvers.
This is a far cry from the old promise never to sell shares for Bitcoin if mNAV dipped below 2.5-critics are circling like vultures around a discount airline meal.
The Billion-Dollar Hangover
The firm’s SEC filing reveals that $310 million of those sweet, sweet dollars came from at-the-market common stock sales at an average price of $354 a pop, with another $47 million dragged in via preferred shares. In total, they scooped up a cool $357 million, which they then used to buy 3,081 Bitcoins like a hoarder stocking up on beans during a pandemic. Their Bitcoin stash now totals a hefty 632,457 BTC-or a little over 3% of all the Bitcoin currently floating around the globe. Their declared goal is a cool million coins, which would make them the Michael Jackson of crypto portfolios. They’re currently about 60% of the way there.
Dilution Dilemma: Will Someone Think of the Shareholders?
Investors already nauseous from stock fluctuations have reason to clutch their pearls. Each stock issuance increases the number of hands reaching into the same Bitcoin cookie jar. And when stock trades below 2.5x mNAV, it’s like handing out chocolates to a growing crowd without baking a bigger cake. The per-share Bitcoin backing evaporates faster than a puddle in July.
Reports peg Strategy’s current debt at around 20% of its Bitcoin net asset value, with room to push it up to 30%. So yes, they do have some borrowing wiggle room. But choosing to issue equity while mNAV is low is still kind of like trading your vintage guitar for snacks when you’re clearly hangry-it weakens the long-term value proposition and leaves everyone wondering whether someone should’ve just ordered pizza instead.
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2025-08-28 18:51