Legal Storm Over Strategy: Rosen Law Firm Launches Investigation, Analysts Debate Risks
The Rosen Law Firm has officially launched an investigation into Strategy (formerly known as MicroStrategy) and invites investors who purchased the issuer's securities to join a potential class action lawsuit. This event has become a significant signal for the market, given Strategy's enormous influence on the crypto industry.
Lawyers are examining whether Strategy and its management published misleading statements about their business model, bitcoin accumulation strategy, profitability, and related risks. Several types of securities are under scrutiny: MSTR, STRF, STRC, STRK, and STRD. Particular attention is focused on STRC — Strategy's perpetual preferred stock.
Parallels with Terra and Arkham's Arguments
The investigation unfolds against a backdrop of growing concern over Strategy's capital structure and its reliance on various instruments to finance bitcoin purchases. Analytics platform Arkham recently commented on comparisons between STRC and the collapsed Terra ecosystem, stating that these situations are fundamentally different.
"Will STRC become the new LUNA? In short — not quite," wrote Arkham experts. They emphasized that Strategy has no legal obligation to support STRC's market price, unlike Terra's algorithmic stabilization mechanisms. The key point: Saylor cannot lose funds due to a decline in STRC. STRC's value merely reflects how much the market believes in the continuation of dividend payments from the company.
However, Arkham analysts also pointed to a significant risk for preferred shareholders: dividend payments remain at the discretion of the board of directors. If Strategy encounters problems, Saylor is not obligated to prioritize dividends for STRC shareholders. According to Arkham's calculations, maintaining the current payout order for STRC requires approximately $1.2 billion per year, raising questions about the sustainability of the financing model under deteriorating market conditions.
Analyst's Opinion: Investigation is Not a Verdict
Prominent analyst Shanaka Anslem pushed back against interpreting the Rosen Law Firm's announcement as evidence of fraud or regulatory violations. He emphasized that such notices are a typical way for law firms to seek clients after a sharp stock decline, not an indication of proven misconduct.
"There is no SEC lawsuit, no DOJ case. No complaint has been filed, no specific misrepresentations have been identified," he noted, adding that the announcement is merely the start of an investigation into potential claims, not a lawsuit with confirmed allegations.
Nevertheless, the market broadly believes that Strategy indeed faces questions regarding the sustainability of its financial model. The company's ability to sustain dividend payments and maintain its bitcoin strategy during periods of market weakness remains critical. At the time of publication, Strategy and Michael Saylor had not responded to a request for comment.
My analysis: The Rosen Law Firm investigation is not so much a blow to Strategy's reputation as a signal that investors and regulators are beginning to scrutinize more closely the complex financial structures built around bitcoin. The main risk for STRC holders is not legal claims, but the company's fundamental ability to generate sufficient cash flow to service all its obligations amid market volatility. The Terra saga showed how quickly trust in complex financial mechanisms can evaporate, and the market remembers this.