Legal Storm Surrounding Strategy: Rosen Law Firm Launches Investigation into Michael Saylor's Company
The Rosen Law Firm has officially announced the initiation of an investigation into Strategy (formerly MicroStrategy) and has invited investors who purchased the company's securities to join a potential class action lawsuit. This event has become another alarming signal for the market, which is already tense due to the instability of the company's financial model.
What are the lawyers investigating?
Rosen attorneys intend to determine whether Strategy and its management published misleading statements regarding its operations, bitcoin storage strategy, business profitability, and the real risks associated with the aggressive model of accumulating the first cryptocurrency. The investigation covers a range of securities: MSTR, STRF, STRC, STRK, and STRD. Particular attention is focused on STRC — a perpetual preferred stock that has recently exhibited extremely volatile behavior.
It is important to emphasize that this investigation is not the filing of charges, but a standard procedure launched amid a sharp decline in the quotes of instruments linked to Strategy. However, the very fact of such attention from a major law firm indicates that the market is seriously concerned about the stability of the company's capital structure.
WILL STRC BECOME THE NEW LUNA? Arkham's opinion
The on-chain analytics platform Arkham hastened to reassure investors, stating that drawing direct parallels between STRC and the collapsed Terra (LUNA) ecosystem would be incorrect. In their view, the key difference is that Strategy has no legal obligation to support the market price of STRC. Unlike Terra's algorithmic stabilization mechanisms, the value of STRC merely reflects how much the market believes in the continuation of dividend payments from Saylor.
However, Arkham also points to a significant risk: dividend payments on preferred shares remain at the company's discretion. If Strategy encounters problems, Saylor is not obligated to prioritize the interests of STRC holders over other obligations. According to analysts' calculations, maintaining the current payment order requires approximately $1.2 billion per year. This figure calls into question Strategy's ability to sustain its chosen financing model in the event of deteriorating market conditions.
Analyst's opinion: Is the panic premature?
Renowned analyst Shanaka Anslem spoke out against hasty conclusions, stating that the Rosen notice is a typical way for law firms to seek clients after a sharp drop in stock prices, rather than evidence of fraud. He emphasized that there is no SEC lawsuit, no DOJ case, and no specific misrepresentations of facts. This is merely the start of an investigation into potential claims, not a lawsuit with confirmed allegations.
Nevertheless, the prevailing market opinion is that Strategy indeed has questions regarding the sustainability of its financial model. The company's ability to withstand dividend payments and maintain its bitcoin strategy during periods of market weakness remains a critical point for all investors.
Cryptalist expert opinion: The initiative by the Rosen Law Firm is just the first warning, not a final verdict. However, it highlights the fundamental vulnerability of Strategy's model: dependence on a constant inflow of capital to service debts and dividends. As long as the market grows, this scheme works flawlessly. But once bitcoin enters a prolonged correction, pressure on the company could become critical. Investors should closely monitor Saylor's ability to generate sufficient cash flow to cover obligations.