Legal Storm Surrounding Strategy: Rosen Law Firm Launches Investigation — What Lies Behind the Stock Decline
The Rosen Law Firm has officially initiated an investigation into Strategy (formerly MicroStrategy) and invited investors who purchased the issuer's securities to join a potential class action lawsuit. This event immediately attracted market attention, given Strategy's key role in corporate bitcoin accumulation.
Investigation Details: What Lawyers Are Examining
Attorneys are investigating whether Strategy and its management published misleading statements regarding operational activities, bitcoin storage strategy, business profitability, and risks associated with the aggressive model of accumulating the first cryptocurrency. The investigation covers a range of securities: MSTR, STRF, STRC, STRK, and STRD. A dedicated page has been created for affected investors to join the case.
The most attention has been drawn to the perpetual preferred stock STRC, which recently showed sharp volatility. Against this backdrop, the Arkham platform was quick to refute comparisons of STRC with the collapsed Terra (LUNA) ecosystem.
Why Arkham Believes STRC Is Not a New LUNA
Arkham experts emphasized a fundamental difference: Strategy has no legal obligation to support the market price of STRC, unlike the algorithmic stabilization mechanisms that played a fatal role in Terra's collapse. "The value of STRC only shows how much the market believes in the continuation of dividend payments from Saylor," analysts noted. However, they pointed out a significant risk: dividend payments remain at the company's discretion, and in the event of financial difficulties, priority may not be given to STRC holders.
According to Arkham's calculations, maintaining the current payout order for STRC requires approximately $1.2 billion per year. This raises serious questions about Strategy's ability to sustain its chosen financing model under deteriorating market conditions.
Analyst Warns: Rosen Notice Is Not Proof of Guilt
Renowned analyst Shanaka Anslem cautioned against hasty conclusions. He emphasized that such notices are a standard way for law firms to find clients after a sharp stock decline, not evidence of proven violations. "There is no SEC lawsuit, no DOJ case. No lawsuit has been filed, no specific misrepresentations have been identified," he stated, adding that the announcement is merely the start of an investigation into potential claims, not a lawsuit with confirmed allegations.
My comment: The Rosen Law Firm investigation is a signal to the market that Strategy's capital structure, built on a complex system of preferred shares, is beginning to raise questions among regulators and investors. However, as analysts rightly note, there is no concrete evidence of violations yet. The key risk for STRC holders is not legal claims, but the company's fundamental ability to generate sufficient cash flow to service these obligations in the long term, especially during bitcoin corrections. As long as Strategy and Michael Saylor remain silent, the market will continue to price in a premium for uncertainty.