Sailor holds course: Strategy reaffirms commitment to Bitcoin amid investigation and market pressure
Michael Saylor broke his prolonged silence. On June 26, he publicly stated that Strategy remains unwavering in its bet on Bitcoin. This statement came amid a legal investigation and growing pressure on the company's capital structure.
The situation surrounding Strategy is heating up. The law firm Rosen Law Firm has launched an investigation to determine whether top executives misled investors regarding five securities offerings. No official comments have been made by the company yet, which only adds fuel to the fire of uncertainty.
Saylor Bets on Discipline
In his post, Saylor avoided directly mentioning the investigation. Instead, he described market volatility as a test for the company. According to him, Strategy continues to bet on high credit quality and the creation of long-term value. Notably, he remained silent about the class-action lawsuit from investors and the decline in the value of preferred securities. Instead, he emphasized discipline in capital management—a signal directed at both shareholders and creditors.
Strategy holds 847,363 Bitcoin on its balance sheet, representing over 4% of the total that will ever be issued. The average purchase price stands at around $75,500 per coin, noticeably higher than the current exchange rate. This gap has led to a reduction in the premium on MSTR shares, which investors paid for indirect leveraged exposure to Bitcoin. At the same time, interest is growing in how the company finances new purchases.
The majority of the Bitcoin was acquired through several issuances of preferred shares traded on the exchange. These securities are now under pressure due to the weakening Bitcoin price and declining market confidence in the dividend model.
Market Pressure Tests Strategy's Resolve
The day before Saylor's statement, Peter Schiff once again criticized the weak performance of Strategy's stock. According to him, MSTR shares have fallen 84% from their all-time high, while STRC preferred shares have dropped 25% below par—their yield reaching 15.3%. Saylor's post appears to be an indirect response to this criticism, although he did not address it directly.
Questions about the long-term sustainability of STRC are becoming more pressing. Dividend payments on these securities cost approximately $1.2 billion per year, while the company recently disclosed only $1.4 billion in cash reserves—enough to last about a year under current conditions.
My expert opinion: Saylor is betting that Bitcoin will recover and surpass the average purchase price, but the current market conditions and legal risks create an exceptionally challenging combination. Whether he can restore investor confidence or the investigation escalates to a new legal level will largely determine Strategy's fate in the coming months. This is a classic case where faith in an asset clashes with the harsh reality of the balance sheet.