Since July 2025, Michael Saylor’s Strategy has sold $14.3 billion worth of MSTR shares at prices below the previously stated 2.5 times multiple-to-Net Asset Value (mNAV) threshold.
The company first announced a formal policy on July 31, 2025, committing not to issue MSTR stock below 2.5x mNAV except for paying interest or dividends. The mNAV metric assumes crypto holdings like Bitcoin equate to net asset value, though this is debated.
Despite the pledge, Strategy updated its guidance on August 18, 2025. The revision added a broad exception allowing the company to issue shares tactically whenever deemed advantageous, effectively enabling unlimited share sales below 2.5x mNAV.
The share sales resumed immediately, including an initial 875,000 shares sold for $310 million that same week. Since then, over 92 million new shares have been sold, increasing the total MSTR shares outstanding from around 284 million in July 2025 to 343 million. This amounts to more than 20% dilution for existing shareholders within a year.
Strategy’s market valuation has consistently remained below the 2.5x mNAV mark throughout this period, once dipping as low as 1x mNAV. Previously, in late 2024 and early 2025, the company traded above 3x the value of its Bitcoin holdings but has not returned to those levels.
Despite the dilution and falling multiples, Strategy managed to meet all preferred dividend and debt interest payments on time, distributing $381 million in preferred dividends during 2025. Bitcoin’s underwhelming performance over the past year partly explains the challenging environment.
