Strategy stock crashed 7% on August 19, as Michael Saylor announced plans for further MSTR equity dilution, taking a U-turn on its mNAV policy. The MSTR stock price touched a four-month low, closing at $336 on Tuesday. Several company loyalists have dumped their stock holdings, criticizing Saylor for his sudden policy changes.
Michael Saylor Faces Backlash on MSTR Stock Dilution Plan
Amid the recent underperformance of Strategy shares on Wall Street, the mNAV for MSTR stock has crashed from 3.63x in November 2024, to now at 1.6x. Company executive chairman Michael Saylor faces major criticism for backtracking on his decision of no stock dilution below the 2.5x mNAV. Saylor justified the move as Strategy struggles to raise more capital for further Bitcoin purchases.
Josh Mandell, an MSTR stock investor and a popular voice on X and Reddit platforms, dumped his holdings after Saylor abandoned his equity dilution promise. Calling Michael Saylor a “liar,” Mandell accused the Strategy chairman of breaking his earlier commitment not to dilute MicroStrategy’s stock by 1 to 2.5 times except for covering interest and dividend payments. In a strong-worded message on the X platform, Mandell wrote:
Ripple CTO David Joel Katz Schwartz , has also joined other critics and has warned investors holding MSTR stock if Bitcoin Pulls back further. He also criticised company’s alleged attempts to intimidate people sharing negative opinions on Michael Saylor’s plans to buy more Bitcoin.
Other loyalists of Strategy have joined Mandell over the recent exodus. They have also called out Saylor’s dishonesty over the stock dilution plans. On the other hand, Strategy employees are also lashing out on the Glassdoor platform. A Strategy employee on Glassdoor described the job as “extremely disappointing,” while an account executive labeled the experience “demoralizing.” During the second quarter, asset manager Vanguard trimmed its stake in Strategy by 10%, amid the recent stock underperformance.
Strategy Stock Eyes Next Stop to $300, Says Analyst
With MSTR stock crashing 7% on Tuesday, it has lost the crucial support at $360, on its head-and-shoulders technical chart pattern, as per recent CoinGape analysis. The next technical support for the stock stands at $300. Interestingly, this would further contract the Strategy premium over Bitcoin, thus making it difficult for Saylor to hold on to stock dilution.
Bhushan Akolkar
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets.
He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
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Source: https://coingape.com/mstr-stock-crashes-as-michael-saylor-takes-u-turn-on-mnav-policy/
