Strategy to Relax Equity Sale Funding Limitation, Allowing Ordinary Shares Issuance When Stock Price is Less Than 2.5 Times Bitcoin Holdings
BlockBeats News, August 19th, according to Bloomberg, MicroStrategy has reportedly relaxed its equity sale financing restrictions, allowing the issuance of common stock when the stock price is below 2.5 times its corresponding Bitcoin holdings, to provide MicroStrategy with more flexibility to raise funds to acquire more BTC.
Some supporters view this development optimistically, believing that the relaxation of the rules indicates MicroStrategy's long-term bullish stance on Bitcoin, allowing it to raise funds at a lower cost, potentially further driving up the price of Bitcoin. Opposing market participants argue that since November 2024, MicroStrategy's Bitcoin premium has dropped from 3.4 times to 1.6 times, and lowering the financing restriction will further dilute shareholder equity.
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