Seilor Holds Its Ground: Strategy Confirms Commitment to Bitcoin Amid Investigation and Market Pressure
Michael Saylor broke his silence for the first time in a long while. On June 26, he posted a statement on X confirming that the company Strategy remains committed to its Bitcoin strategy. This statement came amid several concerning factors: a legal investigation by Rosen Law Firm and growing pressure on the company's own capital structure.
Notably, Saylor's message avoided any mention of the investor class-action lawsuit or the decline in the value of Strategy's preferred shares. Instead, he emphasized discipline in capital management and the creation of long-term value. This signal was directed at both shareholders and creditors. He did not directly comment on the investigation, but his words served as an indirect response to criticism from well-known investor Peter Schiff, who had previously pointed out the weak performance of MSTR stock.
Numbers that speak louder than words
Strategy's balance sheet remains impressive: 847,363 Bitcoins — more than 4% of the total that will ever be issued. However, the company's average purchase price is approximately $75,500 per coin, notably higher than the current market rate. This gap has already led to a compression of the premium on MSTR shares, which investors paid for leveraged indirect exposure to Bitcoin. That premium has now virtually disappeared, and the market is questioning how the company will finance its future purchases.
The majority of Strategy's Bitcoin was acquired through issuances of preferred shares. These securities are now under pressure: their yield has reached 15.3%, and they have fallen 25% below par value. Dividend payments on them cost the company approximately $1.2 billion per year, while its cash reserves stand at only $1.4 billion. Under current conditions, these funds will last about a year.
Expert opinion
Saylor is trying to play the role of a "rock" in a stormy sea, but the fundamental indicators are beginning to crack. Discipline in capital management is fine, but when the sole asset (Bitcoin) trades below the average purchase price and the dividend burden grows, the long-term sustainability of the strategy comes into serious question. In the coming months, we will see whether Saylor can restore market confidence or whether the legal investigation will be the straw that breaks the back of this Bitcoin empire.