Rosen Law Firm Launches Investigation into Strategy (MicroStrategy): What’s Behind the Stock Decline?
The Rosen Law Firm has officially announced the initiation of an investigation into Strategy (formerly MicroStrategy) and invites investors who purchased the issuer's securities to join a potential class action lawsuit.
Rosen specialists are examining whether Strategy and its management published misleading statements regarding operational activities, bitcoin storage strategy, business profitability, and the real risks associated with the aggressive model of accumulating the first cryptocurrency. The focus is on five types of securities: MSTR, STRF, STRC, STRK, and STRD. A dedicated page has been created for affected holders to join the investigation.
Investigation Details and Market Reaction
The investigation began amid increased attention to Strategy's capital structure and the company's growing reliance on various debt and equity instruments to finance bitcoin purchases. Although Rosen has not yet filed official charges, the mere fact of the investigation coincided with sharp volatility in instruments linked to Strategy. Of particular interest is STRC, the company's perpetual preferred stock, which recently collapsed below par value.
The on-chain analytics platform Arkham has already commented on comparisons between STRC and the collapsed Terra ecosystem, emphasizing that these situations are fundamentally different. According to Arkham experts, 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," analysts noted.
Key point: Strategy is not legally obligated to pay dividends. If the company encounters problems, Michael Saylor is not required to prioritize payments to STRC holders. According to Arkham's calculations, maintaining the current dividend payment order for STRC requires approximately $1.2 billion per year. This raises questions about the sustainability of the entire financing model in a deteriorating market environment.
Expert Assessment: Panic or Justified Risks?
Renowned analyst Shanaka Anslem spoke out against hasty conclusions, stating that Rosen's notice is a standard method for law firms to find clients after a sharp stock decline, rather than a sign of proven violations. "There is no SEC lawsuit, no DOJ case. No lawsuit has been filed, no specific misrepresentations of facts," he emphasized.
My expert commentary: Although the current Rosen investigation may indeed turn out to be merely a formal step, Strategy's fundamental problem remains unchanged. The company has built a complex financial pyramid based on bitcoin, where payments on preferred shares depend on the continuous growth of the asset's price. In a market correction environment, Saylor's ability to service this debt raises serious doubts. Investors should closely monitor developments — even without lawsuits, Strategy's financial model may crack.