Michael Saylor Reverses MicroStrategy Share Issuance Policy

• Lyla Velez
• August 20, 2025
• Business
• 0 Comments

MicroStrategy’s stock declined approximately 7% after Executive Chairman Michael Saylor reversed a previous stance on share issuance policy. Saylor announced the policy change on August 18, affecting market sentiments negatively.

Saylor’s reversal on the share issuance policy may lead to dilution and reduced trust, impacting micro and macro-level market reactions.

“We believe shareholders benefit from management flexibility in executing our capital markets strategy.” – Michael Saylor, Executive Chairman, MicroStrategy (source)

Saylor has altered MicroStrategy’s policy to permit the issuance of new shares at lower market-to-net asset value (mNAV) multiples. This decision follows a July pledge to restrict share issuance below 2.5x mNAV. Saylor stated the change allows management greater flexibility to execute the company’s capital strategy, though it risks diluting shareholder value.

The swift policy reversal has led to a 7% drop in MicroStrategy’s stock price, reflecting investor discontent. Concerns center on the dilution risk this poses to existing shareholders and the drop in share value. Bitcoin, the primary holding of MicroStrategy, declined by 8.6%, further pressuring the company’s market value.

The policy change comes at a time when crypto-exposed companies are grappling with market volatility and regulatory scrutiny. MicroStrategy’s decision to issue shares at lower mNAV multiples has raised concerns among investors about potential dilution and the volatility of crypto-treasury stocks.

Analysis suggests MicroStrategy’s policy shift may have longer-term implications for shareholder trust and market stability. Investor sentiment, crucial to the company’s valuation, has been affected, mirroring the uncertainty seen in broader cryptocurrency markets. Historical trends indicate that sudden policy reversals can lead to increased volatility and market skepticism.