Sailor holds course: Strategy confirms commitment to bitcoin amid legal pressure and market risks
Michael Saylor stepped into the public eye for the first time in a long while to reaffirm his company's strategic direction. On June 26, he stated that Strategy remains committed to Bitcoin. This statement came at a time when the company is facing multiple challenges: a legal investigation by Rosen Law Firm and growing pressure on its capital structure.
Saylor did not directly comment on the investors' class-action lawsuit or the decline in the value of preferred shares. Instead, he emphasized discipline in capital management and long-term value creation. This is a signal addressed to both shareholders and creditors: the company intends to remain calm despite the turbulence.
Numbers that speak louder than words
On Strategy's balance sheet, there are 847,363 BTC, representing more than 4% of the total volume that will ever be issued. The average purchase price is around $75,500 per coin, significantly higher than the current market rate. Due to this gap, the premium on MSTR shares, which investors paid for indirect leveraged access to Bitcoin, has substantially decreased.
At the same time, interest is growing in how the company finances new purchases. Strategy acquired most of its Bitcoin through 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.
The market tests Strategy's resilience
The day before Saylor's statement, Peter Schiff once again criticized the weak performance of Strategy's shares. According to him, MSTR shares have fallen 84% from their all-time high, and STRC preferred shares have dropped 25% below par value, with 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 increasingly stringent. Paying dividends on these securities costs approximately $1.2 billion per year, while the company recently disclosed only $1.4 billion in cash reserves. This would last about a year under current conditions.
My analysis: Saylor is betting that Bitcoin will recover faster than the market loses faith in his model. However, given the current pressure on preferred shares and legal risks, the company is entering a zone of heightened uncertainty. The next few months will be decisive for Strategy: either the market will believe in the story again, or we will see structural changes in its capital.