Why Strategy (MSTR) Shares Fell to a 4-Month Low Amid Bitcoin Volatility
Strategy (MSTR) has seen its stock fall to a four-month low of approximately $336.57 on Aug. 19, 2025, marking an 8% drop since the start of the week and a 20.47% decline over the past month.
MSTR Stock Price Chart (Source: Yahoo Finance)
The decline follows general losses in crypto-linked stocks, a result of an 8.6% drop in Bitcoin’s price from its record high of $124,457 on Aug. 14 to roughly $113,823 as of Aug. 20, 2025.
BTC Price Chart (Source: CoinMarketCap)
Other crypto-related companies face the same pressures: MARA Holdings fell 19.44%, Coinbase dropped 26.97%, and Riot Platforms declined 14.69%.
Strategy’s stock, which is closely tied to Bitcoin due to its substantial cryptocurrency holdings, last traded at these levels on April 17, 2025, when Bitcoin was priced around $84,030. The company’s market capitalization has also decreased, a testament to investors’ concern about Bitcoin’s volatility and Strategy’s recent decisions and developments.
Strategy’s New Equity Plan Sparks Investor Backlash
On Aug. 18, 2025, Strategy revised its MSTR Equity ATM (at-the-market) Guidance to allow better flexibility of its share issuances.
Executive Chairman Michael Saylor posted on X, “Strategy today announced an update to its MSTR Equity ATM Guidance to provide greater flexibility in executing our capital markets strategy.”
Previously, the company capped its share issuances at above 2.5 times its net asset value per share (mNAV) to minimize dilution. The new policy permits issuances below this threshold to cover debt interest, prefund preferred equity dividends, or when the company decides it favors its best interest.
With an mNAV of 1.55 and Bitcoin holdings of 628,791 BTC—valued at approximately $71.28 billion at a Bitcoin price of $113,823—the change has ignited a debate.
Some shareholders criticized the move, citing Saylor’s Q2 earnings stand in opposing issuance below 2.5x mNAV. An investor shared his concerns on X, saying, “The CEO proclaimed that he wouldn’t sell below 2.5 mNAV, so I bought… And then sold under mNAV 2.5,” an indication of possible betrayal felt by investors.
Is Saylor’s Approach a Boost to Bitcoin or Investor Betrayal?
The Bitcoin community is divided in regard to the recent Strategy’s policy shift.
Critics called it a confidence-damaging decision, stating that “He’s folding. This could be an upgrade since the last announcement promised death. In addition, changing up does not exactly instill confidence.”
Others who are supporters see it as a sign of aggressive Bitcoin accumulation. Crypto trader Kale Abe wrote on X, “He’s literally saying straight up he’s gonna buy a… ton more BTC,” while Bitcoin developer Endre Stolsvik argued the 2.5 mNAV rule was “too strict” given current market conditions.
Strategy, with 628,791 BTC since its aggressive buying approach began in 2020, is the largest corporate holder of Bitcoin. The company has been seeking big capital raises, including a $4.2 billion ATM facility to buy Bitcoin, as part of its total $42 billion “21/21” program of a combination of equity and fixed-income securities.
The company’s inclusion in the Nasdaq-100 in December 2024 has boosted its market presence, with potential S&P 500 inclusion expected in 2025.
