Strategy May Be Relaxing Equity-Issuance Policy, Issues Stock to Fund $357M Bitcoin Purchase

• Policy rollback allowed $310M common stock sale to fund Bitcoin purchase.

• Strategy bought $357 million in Bitcoin, partly funded by preferred offerings (SRTK, STRF, STRD).

• Company holds ~632,500 BTC (~$70.5B) and can still issue up to $16.7B under an ATM program.

Strategy equity issuance policy change: Strategy issued common stock to buy Bitcoin — read how this affects funding, mNAV, and preferred shares. Stay informed with COINOTAG coverage.

What is Strategy’s equity issuance policy change?

Strategy equity issuance policy was amended to relax a prior restriction that prevented issuing common stock when mNAV fell below 2.5x. The company said the framework intended to show discipline can be set aside “when otherwise deemed advantageous,” enabling a $310 million common stock issuance to help fund a $357 million Bitcoin purchase.

How did Strategy fund its latest Bitcoin purchase?

Strategy purchased $357 million in Bitcoin last week. The company sold $310 million in common stock and raised about $47 million by issuing preferred shares (SRTK, STRF, STRD). Under an at-the-money (ATM) program established in May, Strategy retains capacity to issue up to $16.7 billion in additional common stock.

Why did Strategy revisit the mNAV guardrail?

Management framed the original mNAV threshold as a discipline signal to common stockholders. Analysts and investor relations commentary noted the policy included a carve-out to proceed when advantageous. The revision restores tactical flexibility to capitalize on market conditions and preferred-stock funding options.

What do market moves and metrics show?

Strategy shares fell about 2.7% to $348 on Monday, per Yahoo Finance (plain text source). Shares remain roughly 20% higher year-to-date despite a pullback from a recent high. Bitcoin’s price was reported near $112,580, down ~1.6% over 24 hours but up ~20% year-to-date, per CoinGecko (plain text source).

Does preferred issuance change the funding risk profile?

Strategy introduced multiple preferred share series this year. Preferred offerings raise capital but add dividend obligations and specific terms. Some market observers, including Andy Constan (CEO & CIO, Damped Spring Advisors), have warned these dynamics could pressure the company’s funding model if dividends require ongoing equity issuance.

Frequently Asked Questions

How much common stock did Strategy issue for the purchase?

Strategy issued $310 million in common stock to help fund a $357 million Bitcoin acquisition, supplementing the purchase with roughly $47 million from preferred stock offerings.

Will Strategy still use ATM offerings?

Yes. Under its ATM program, Strategy can issue up to $16.7 billion in common stock, which remains available as a capital source for future Bitcoin purchases or corporate needs.

Key Takeaways

• Policy flexibility restored: Strategy amended its equity issuance guardrail to allow opportunistic funding moves.
• Funding mix diversified: Recent purchase funded via $310M common issuance plus preferred share sales (SRTK, STRF, STRD).
• Market and governance signals: The pivot raises questions about dilution, preferred dividend obligations, and predictability of future ATM activity.

Conclusion

Strategy’s modification of its equity issuance policy and the subsequent $310 million common-stock sale to fund a $357 million Bitcoin purchase underscore a tactical shift in capital deployment. Investors should monitor mNAV dynamics, preferred dividend terms, and ATM utilization as indicators of future funding strategy. COINOTAG will continue to track official filings and market data from Bitcoin Treasuries, CoinGecko, and market price services for updates.

Published by COINOTAG • Published: 2025-08-25 • Updated: 2025-08-25