Strategy bets on Bitcoin: Strategy withstands market pressure and legal risks
Michael Saylor broke his silence for the first time in a long while. On June 26, he published a statement confirming that the company Strategy remains committed to Bitcoin. This came amid a securities investigation and growing pressure on the company's capital structure.
Saylor reaffirms commitment to Bitcoin
In his post, Saylor did not directly comment on the investigation. Instead, he emphasized that market volatility is a test for the company. According to him, Strategy continues to bet on high credit quality and the creation of long-term value.
Notably, what Saylor did not mention is significant. He remained silent on the investor class-action lawsuit and the decline in value of Strategy's preferred securities. Instead, he focused on capital management discipline—a signal aimed at both shareholders and creditors.
Strategy holds 847,363 Bitcoin on its balance sheet, representing more than 4% of the total that will ever be issued. The average purchase price is around $75,500 per coin, noticeably higher than the current rate. This gap has reduced the premium on MSTR shares that investors paid for leveraged indirect exposure to Bitcoin. At the same time, interest is growing in how the company finances new purchases.
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% from par value—their yield reaching 15.3%. Saylor's post appears to be an indirect response to this criticism, though 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 for about a year under current conditions.
Whether Saylor can restore investor confidence or the investigation escalates to a new legal level will largely determine Strategy's fate in the coming months.
Analyst's opinion: The situation resembles a classic stress test for a corporate strategy based on a single asset. Saylor still has room to maneuver, but each month of delay in Bitcoin's price recovery increases risks for preferred security holders. Legal risks only add to the uncertainty.