MicroStrategy Stock Drops as Michael Saylor Faces Backlash Over mNAV Policy Shift

Shares of MicroStrategy (MSTR) fell by 7% on Tuesday after executive chairman Michael Saylor scrapped his long-standing mNAV policy and opened the door for further share dilution to purchase more Bitcoin. The stock hit a four-month low, closing at $336. The sudden reversal triggered a strong backlash among investors, with some long-time supporters selling off their holdings.

Breaking Away From the mNAV Pledge The key metric mNAV (modified Net Asset Value) for MSTR shares has collapsed from 3.63x in November 2024 to the current 1.6x. Saylor had previously vowed not to dilute shares below the 2.5x mNAV threshold. Now, however, he has abandoned that commitment, justifying the move by saying the company needs fresh capital to continue expanding its Bitcoin reserves.

Investors Revolt: “Saylor Lied” One of the most vocal critics was Josh Mandell, a well-known MSTR investor and commentator on X and Reddit. Mandell sold his stake, accusing Saylor of being a “liar” for breaking his earlier pledge not to dilute shares beyond covering dividends and interest. In a sharp post on X, Mandell wrote: “Stop asking me why I sold $MSTR at 1.5 mNAV. I bought shares above that price, and then Saylor sold. He said they wouldn’t do it… and then he did. From now on, I won’t support anything this man announces.”

Criticism Spreads – From Ripple to Inside the Company Ripple’s CTO David Joel Katz Schwartz also joined the criticism, warning investors that if Bitcoin’s price continues to fall, MSTR shareholders could face significant losses. Internal voices are growing louder as well. On Glassdoor, one employee described the job as “extremely disappointing,” while a sales representative called it “demoralizing.”

Investors Pull Back, Vanguard Cuts Stake Institutional investors are also taking steps back. Vanguard, one of the largest asset managers, reduced its stake in MicroStrategy by 10% during Q2, coinciding with the company’s recent underperformance.

Technical Analysis: Targeting $300 Next Technical charts show that MSTR stock has lost key support at $360, with a head-and-shoulders pattern forming. Analysts now see the next major support level at $300.

A move toward that level would further reduce MicroStrategy’s premium over Bitcoin, making it harder for Saylor to defend his share dilution strategy.

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