Michael Saylor challenges the market: Strategy stays the course on Bitcoin despite investigation and pressure
Michael Saylor broke his silence for the first time in a long while. On June 26, he published a statement on X confirming that Strategy remains committed to Bitcoin. This came amid several alarming signals: a legal investigation by Rosen Law Firm examining possible violations related to five securities issuances, and growing pressure on the company's own capital structure.
Silence as a Strategy: What Saylor Didn't Tell Investors
Notably, in his post, Saylor avoided mentioning both the class-action lawsuit from investors and the collapse of Strategy's preferred shares. Instead, he emphasized capital management discipline and the creation of long-term value. This is a direct signal to both shareholders and creditors: the company is not deviating from its path, even when the market questions its stability.
Strategy holds 847,363 Bitcoin on its balance sheet, accounting for over 4% of the total supply that will ever be issued. The average purchase price is around $75,500 per coin, notably 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. Now, attention is shifting to how the company will finance new purchases.
Market Pressure: A Test of Strength for Strategy
Criticism is mounting. Peter Schiff did not miss the opportunity to point out weak dynamics: MSTR shares have fallen 84% from their all-time high, while STRC preferred shares have dropped 25% from par value, with yields reaching 15.3%. Saylor's post appears as an indirect response to this criticism, even though he does not directly mention it.
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. This would cover about one year under current conditions.
Expert Opinion
Saylor is going all-in: his narrative about "discipline" is an attempt to maintain trust at a time when the market is beginning to doubt Strategy's model itself. Either he can restore the share premium through a new Bitcoin rally, or the legal investigation and capital pressure will escalate to a new level. The company's fate will be decided in the coming months.