During its Q2 2025 earnings call on July 31, Strategy (MSTR) announced that it will no longer issue its MSTR common stock at multiples of native asset value (mNAV) lower than 2.5x, except in the case of financing dividend payments for its preferred shares (STRF, STRK, STRC, STRD).
Over the last year, Strategy has raised nearly $25 billion selling common stock via its at-the-market (ATM) offerings. MicroStrategy announced a $21 billion common stock ATM back in October 2024 as part of its $42 billion capital plan. It exhausted the entire common ATM within the first half of 2025. The company rebranded to Strategy and announced another $21 billion ATM in May 2025. As of August 4, $17 billion of the second $21 billion common ATM remains, indicating that Strategy has raised $25 billion since October 2024 selling its common stock.
In the Q2 2025 earnings call, management expressed their belief that MSTR was heavily undervalued, and it laid out a plan for common stock ATM issuance. Strategy’s key metric of interest is mNAV, which represents the multiple of the company’s enterprise value over its bitcoin holdings. An mNAV of 2x means that the enterprise value of the company is 2x the value of the company’s bitcoin treasury. According to the Strategy dashboard, the company’s current mNAV is 1.68x (see image below).
Management stated that Strategy would only issue MSTR at below 2.5x mNAV to fund dividend payments on preferred shares. Since January 2025, Strategy has launched four different perpetual preferred shares offerings: STRK, STRF, STRD, and STRC, each of which pay dividends between 8-10%. Strategy’s team said the company will issue MSTR when the mNAV is between 2.5-4x, and it will issue it more aggressively when mNAV is above 4x.
With these new parameters for the common equity, Strategy aims to create more confidence in MSTR and lean more into its preferred offerings as a capital raising vehicle. All four preferred offerings have their own multi-billion dollar ATM offerings.
Read More: The $2.5 billion STRC offering is the largest IPO all year: Strategy
Last week, Strategy purchased 21,021 BTC using the proceeds from its STRC IPO. It made no new BTC purchase announcements on Monday.
At time of publication, MSTR is up 4%.
