MicroStrategy dey cut down BTC buy as demand for preferred stock drop
MicroStrategy Bitcoin co-founder Michael Saylor talk say, for August 18, dem buy 430 BTC for $51.4 million, wey be sharp drop from how di company dey buy Big Bitcoin before. Famous yawa short-seller James Chanos talk say this smaller buy fit mean say demand for MicroStrategy preferred stock don reduce, wey be the main way them dey finance their Bitcoin plan. After Q2 2025 results, MicroStrategy get policy wey dey restrict stock issuance under 2.5× market-to-net asset value (mNAV) to cover debt or pay dividend, no be to buy Bitcoin. But now dem talk say "when otherwise deemed advantageous" for recent presentation fit give management extra freedom to issue equity, wey fit scatter shareholder value. Traders go dey watch if weaker demand for preferred stock go block future BTC buys. This change show say people don dey check MicroStrategy Bitcoin funding methods well and wetin e mean for corporate crypto strategies.
Bearish
MicroStrategy dey reduce how dem dey buy BTC and James Chanos observation about how demand for preferred stock dey weak fit mean say dem fit get wahala to get money to buy more Bitcoin. For history, MicroStrategy big BTC buys dey support better confidence for both MSTR stock and Bitcoin; but this small buy of 430 BTC fit make investors no too sure. The uncertainty about the “when otherwise deemed advantageous” clause dey make people fear say shareholders fit lose money and equity fit be issued for lower mNAV multiples. For short term, traders fit see these money wahala as bad for MSTR and small bad for Bitcoin, because less institutional demand fit reduce price pressure. For long term, MicroStrategy still dey committed to Bitcoin, but if dem still dey hard to get money through preferred stock, dem fit dey more careful with BTC buying. This matter fit stop dem from buying plenty Bitcoin, keep market feeling calm till dem find better finance way.