Legal Storm Surrounding Strategy: Rosen Law Firm Launches Investigation, Investors Prepare for Class Action Lawsuit
The Rosen Law Firm has 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. The focus is on the accuracy of management's public statements regarding the business model, the bitcoin accumulation strategy, and associated risks.
The investigation covers a range of instruments, including MSTR, STRF, STRC, STRK, and STRD shares. Of particular interest is the perpetual preferred stock STRC, which has recently exhibited extreme volatility. Although Rosen has not yet filed formal charges, the mere fact of the investigation amid sharp fluctuations in the value of these securities is already causing concern among market participants.
Parallels with Terra and Arkham's Position
The analytics platform Arkham has been quick to dispel fears that the STRC situation resembles the collapse of the Terra ecosystem. Arkham experts emphasize a fundamental difference: Strategy has no legal obligation to support the market price of its preferred shares, unlike the algorithmic stabilization mechanisms that led to LUNA's collapse. "The value of STRC merely reflects how much the market believes in the continuation of dividend payments by Saylor," analysts note. "Unlike Terra, the company cannot go bankrupt due to a drop in STRC." However, they remind that dividend payments remain at the discretion of the board of directors, and priorities may shift if market conditions deteriorate.
According to Arkham's estimates, Strategy requires approximately $1.2 billion per year to maintain the current level of dividend payments on STRC. This raises questions about the sustainability of the financing model for bitcoin purchases in the event of a prolonged bear market.
Market and Expert Reaction
Prominent analyst Shanaka Anslem urged against dramatizing the situation. "There is no SEC lawsuit, no DOJ case. No complaint has been filed, no specific misrepresentations have been identified," he wrote. "This is standard practice for law firms seeking clients after a sharp stock decline, not an indication of proven violations." Nevertheless, questions about Strategy's financial model remain: can the company sustain its bitcoin strategy and pay dividends during periods of market weakness?
Cryptalist Commentary: The Rosen investigation is merely an initial warning, not a verdict. But it highlights a fundamental risk: Strategy's model is tied to a constant inflow of capital through the issuance of debt and equity instruments. If the market doubts the company's ability to generate sufficient cash flow to service these obligations, we could see a cascading decline. Investors should closely monitor quarterly reports and dividend payment dynamics — this will be a better indicator of the model's health than any legal maneuvers.