Seilor holds its ground: Strategy confirms its bitcoin course amid legal investigation and market pressure
Michael Saylor, Chairman of the Board of Strategy (formerly MicroStrategy), made a public statement for the first time in a long while. On June 26, he wrote on X that the company remains committed to Bitcoin. This statement came amid an investigation initiated by the law firm Rosen Law Firm, which is examining whether Strategy's top executives misled investors regarding five securities offerings.
Silence as a Weapon: What Saylor Didn't Say
Notably, in his post, Saylor bypassed both the class-action lawsuit from investors and the decline in the value of Strategy's preferred shares. Instead, he emphasized discipline in capital management and long-term value creation. This is a clear signal addressed to both shareholders and creditors: the company intends to weather the storm without changing its strategy.
Strategy holds 847,363 Bitcoin on its balance sheet, representing over 4% of the total supply that will ever be issued. The average purchase price per coin is approximately $75,500, notably higher than the current exchange rate. This gap has led to a compression of the premium on MSTR shares, which investors paid for indirect leveraged exposure to Bitcoin.
Pressure on Preferred Shares
Critics, notably well-known investor Peter Schiff, point to the weak performance of Strategy's stock. According to him, MSTR common shares have fallen 84% from their all-time high, while STRC preferred shares have dropped 25% from par value, with their yield reaching 15.3%. Dividend payments on these shares cost 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: The situation surrounding Strategy is a classic stress test for an institutional Bitcoin holder. While Saylor demonstrates unwavering confidence, the market is testing the resilience of his financing model. Whether he can restore investor confidence or whether the investigation escalates into a full-blown legal crisis will determine the company's fate in the coming months. Personally, I believe that given the current debt level and market conditions, Saylor's maneuver is an all-or-nothing gamble that could either triumphantly confirm his genius or mark the beginning of the end of the "corporate HODL" era. Keep an eye on STRC dynamics — it is the most sensitive indicator of the company's health.