Legal Storm Around Strategy: Rosen Law Firm Launches Investigation, Market Speculates on the Resilience of Saylor's Model
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 event has drawn close market attention, given Strategy's key role in corporate bitcoin accumulation.
Attorneys are examining whether Strategy and its management published misleading statements regarding its business model, bitcoin storage strategy, profitability, and related risks. The investigation covers a range of securities: MSTR, STRF, STRC, STRK, and STRD. Of particular interest is STRC — a perpetual preferred stock that has recently attracted analyst attention.
Why STRC Will Not Become the New LUNA: Arkham's Analysis
On-chain analytics platform Arkham was quick to reassure the market, stating that comparisons between STRC and the collapsed Terra (LUNA) ecosystem are incorrect. Unlike the algorithmic stabilization mechanisms that led to Terra's collapse, Strategy has no legal obligation to maintain STRC's market price. As Arkham emphasized, "Saylor cannot lose funds due to a decline in STRC. The value of STRC only shows how much the market believes in the continuation of dividend payments." However, analysts also pointed out a key risk: dividend payments on STRC remain at the company's discretion, and it is not legally obligated to make them. According to Arkham's calculations, Strategy would need approximately $1.2 billion per year to maintain the current payment schedule, raising questions about the sustainability of its financial model during periods of market weakness.
Market Reaction and Expert Opinions
Despite the uproar, renowned analyst Shanaka Anslem urged against dramatizing the situation. He noted that the Rosen notice is a standard way for law firms to seek clients after a sharp stock decline, not an indication of proven violations. "There is no SEC lawsuit, no DOJ case, no filed complaints, no specific factual misrepresentations," he wrote. Nevertheless, overall market concern persists regarding Strategy's ability to sustain dividend payments and maintain its bitcoin strategy during periods of market instability. The company and Michael Saylor have so far refrained from commenting.
My analysis: The Rosen investigation is more a signal of growing market skepticism toward Strategy's complex financial structure than a real threat. However, the annual $1.2 billion dividend requirement is a serious burden that will test Saylor's model's resilience during any significant decline in bitcoin's price. Investors should closely monitor the company's financial reports.