Seilor issues a challenge: Strategy holds its course on Bitcoin amid a legal storm and market pressure
Michael Saylor, co-founder and chairman of Strategy, broke his public silence for the first time in a while. On June 26, he published a statement reaffirming the company's unwavering Bitcoin strategy. This came amid two alarming signals: the launch of an official investigation into Strategy's securities and growing pressure on its capital structure.
Strategy Against the Odds: Saylor Bets on Discipline
In his post, Saylor avoided direct mentions of the investigation. Instead, he called the current market volatility a "test" and emphasized that the company remains committed to its course of creating long-term value and maintaining high credit quality. Notably, he completely bypassed the class-action lawsuit from investors and the collapse of Strategy's preferred securities. The focus was solely on capital management discipline — a signal aimed at both shareholders and creditors.
The Numbers Are on Saylor's Side, but the Market Doesn't Believe
Strategy's balance sheet holds 847,363 BTC — over 4% of all Bitcoin ever issued. The average purchase price per coin is around $75,500, significantly higher than the current market rate. It is precisely due to this gap that the premium on MSTR shares, which investors paid for leveraged indirect exposure to Bitcoin, has notably shrunk. At the same time, tension is growing over how the company will finance new purchases.
Market Pressure: Preferred Securities Under Fire
A day before Saylor's statement, well-known critic Peter Schiff once again pointed out the weak performance of Strategy's stock. According to him, MSTR has fallen 84% from its all-time high, and STRC preferred securities have dropped 25% from their par value, with their yield soaring to 15.3%. Saylor's post appears as an indirect response to this criticism, although he did not directly address it.
Questions about the long-term sustainability of STRC are becoming increasingly acute. Paying dividends on these securities costs the company approximately $1.2 billion per year, while Strategy's recently disclosed cash reserves stand at only $1.4 billion. This is enough for roughly one year under current conditions.
My analysis: The situation surrounding Strategy is a classic stress test for any company with a concentrated bet on a single asset. Saylor is betting that Bitcoin will recover faster than the reserves run out. But if market pressure and legal risks continue to mount, the company will either have to seek new sources of financing or reconsider its dividend policy. The next few months will be decisive in determining whether Strategy can hold its ground or if we will witness the first serious crisis in its Bitcoin strategy.