Rosen Law Firm Launches Investigation into Strategy: What Lies Behind the Claims Against Michael Saylor's Bitcoin Strategy?
The Rosen Law Firm has officially announced the initiation of an investigation into Strategy (formerly MicroStrategy) and has invited investors who purchased the issuer's securities to join a potential class action lawsuit. This development has drawn close market attention, given Strategy's central role in corporate bitcoin accumulation.
Attorneys are examining whether Strategy's management published misleading statements regarding the company's operational activities, bitcoin storage strategy, business profitability, and the real risks associated with the aggressive financing model for purchasing the first cryptocurrency.
Investigation Details: Which Securities Are Under Scrutiny?
The investigation focuses on several types of Strategy securities: MSTR, STRF, STRC, STRK, and STRD. Particular attention is on STRC — a perpetual preferred stock whose volatility has raised questions about the financial stability of the entire structure. The investigation began amid the company's growing reliance on various debt and equity instruments to finance bitcoin purchases, creating a complex and potentially fragile capital structure.
Why STRC Is Not LUNA: Arkham's Analysis
On-chain analytics platform Arkham has already issued an important clarification, refuting direct parallels between the STRC situation and the collapse of the Terra ecosystem. Arkham experts emphasize that Strategy has no legal obligation to support the market price of STRC, unlike the algorithmic stabilization mechanisms that led to LUNA's collapse.
"The value of STRC only shows how much the market believes in the continuation of dividend payments from Saylor. Unlike Terra, Saylor cannot lose funds due to a drop in STRC," analysts note. However, the key risk remains: paying dividends on preferred shares is not a legal obligation but a decision of the board of directors, which can be reconsidered at any time.
According to Arkham estimates, maintaining the current level of dividend payments on STRC requires approximately $1.2 billion per year. This burden calls into question Strategy's ability to adhere to its chosen financing model in the event of deteriorating market conditions.
Expert Opinion: Rosen's Notice Is Not a Verdict
Prominent analyst Shanaka Anslem urged not to dramatize the situation, pointing out that such notices are standard practice for law firms seeking clients after a sharp stock decline. "There is no SEC lawsuit, no DOJ case. No lawsuit has been filed, no specific misrepresentations of facts," he emphasizes, reminding that this is merely the beginning of an investigation into potential claims, not confirmed accusations.
My analysis: The Rosen Law Firm investigation is a serious signal for the market, but not a panacea. Strategy's main vulnerability lies not in legal risks, but in its fundamental ability to generate sufficient cash flow to service growing debt and dividend obligations, especially during a prolonged bitcoin correction. Investors should closely monitor quarterly reports rather than headlines about investigations.