Legal Pressure Against MicroStrategy: Rosen Law Firm Launches Investigation into Strategy and Its Bitcoin Strategy
Market attention is focused on a new round of legal tension surrounding Strategy (formerly MicroStrategy). The law firm Rosen has officially announced the initiation of an investigation into the company and its management, inviting investors who purchased the issuer's securities to join a potential class action lawsuit.
Lawyers are examining whether Strategy misled investors regarding its business model, bitcoin accumulation strategy, and the actual profitability and risks associated with its aggressive cryptocurrency purchases for the corporate reserve. Several instruments have come under scrutiny: common shares MSTR, as well as preferred securities STRF, STRC, STRK, and STRD.
What lies behind the lawsuit: from capital questions to panic around STRC
Rosen's initiative did not arise out of nowhere. Questions have long been brewing in the market regarding Strategy's capital structure and its growing dependence on various types of securities to finance bitcoin purchases. Particular attention is focused on the perpetual preferred share STRC, whose price shows sharp fluctuations.
Analytical platform Arkham was quick to dispel the panic comparing STRC's decline to the collapse of the Terra (LUNA) ecosystem. "STRC is not the next LUNA," Arkham emphasizes. "Unlike Terra's algorithmic mechanisms, Strategy is not obligated to artificially support the price of STRC. The decline in quotes merely reflects market opinion on the likelihood that the company will continue to pay dividends." However, Arkham also notes a critical risk: by law, Strategy is not obligated to pay dividends on preferred shares. In the event of financial difficulties, Michael Saylor could simply suspend payments, placing STRC holders in a priority but not guaranteed position.
According to Arkham's estimates, Strategy may require approximately $1.2 billion per year to maintain its current dividend policy. Against the backdrop of expanding financing schemes and market volatility, the sustainability of such a model raises serious doubts.
Expert opinion: Rosen's notice is not a verdict
Well-known analyst Shanaka Anslem urges not to dramatize the situation. He reminds that such notices from law firms are standard practice after a decline in quotes. "There is no SEC investigation, no lawsuit from the Department of Justice, no filed complaint, no specific false statements identified," he wrote. "This is merely the beginning of a review of potential claims, not the lawsuit itself based on a discovered violation." Strategy and Michael Saylor have not officially commented on the investigation at the time of publication.
Cryptalist comment: Although Rosen's notice is indeed not proof of violations, the very fact of its appearance is a warning signal for the market. Investors are increasingly closely monitoring Strategy's ability to fulfill dividend obligations during periods of market downturns. While bitcoin is rising, Saylor's model looks brilliant. But the question of its sustainability in a prolonged bear market remains open, and legal pressure only adds uncertainty to this already complex case.