Strategy makes a move: public declaration of loyalty to Bitcoin amid legal pressure
Michael Saylor stepped out of the shadows for the first time in a long while. On June 26, he published a post on X confirming that Strategy remains unwavering in its commitment to Bitcoin. This statement came at a critical moment: the company itself was under close scrutiny due to an investigation initiated by the law firm Rosen Law Firm and growing pressure on its capital structure.
In his address, Saylor avoided directly mentioning the investigation. Instead, he focused on market volatility, calling it a test for the company. According to him, Strategy continues to bet on high credit quality and the creation of long-term value for shareholders. This was not just a comment, but a clear signal to the market: Strategy is not deviating from its path.
What Lies Behind Saylor's Words?
Notably, what Saylor omitted is telling. He did not mention the class-action lawsuit from investors or the decline in the value of Strategy's preferred securities. Instead, he emphasized discipline in capital management. This signal is directed not only at shareholders but also at the company's creditors, who are increasingly closely monitoring its financial stability.
Strategy holds 847,363 Bitcoin on its balance sheet—more than 4% of the total that will ever be issued. The average purchase price is around $75,500 per coin, which is noticeably higher than the current rate. This gap has led to a reduction in the premium on MSTR shares, which investors paid for indirect leveraged exposure to Bitcoin. At the same time, interest is growing in how the company will finance new purchases.
Market Pressure and Schiff's Criticism
The day before Saylor's statement, well-known critic 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, while STRC preferred shares have dropped 25% from their par value. The yield on the latter has reached 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 more stringent. Dividend payments on these securities cost the company approximately $1.2 billion per year, while Strategy recently disclosed only $1.4 billion in cash reserves. This is enough for about a year under current conditions, creating additional tension.
My analysis: Saylor is betting that Bitcoin will recover and surpass the average purchase price, but time is working against him. If the legal investigation escalates or pressure on the capital structure intensifies, Strategy may face the need for emergency restructuring. For now, the market assesses this probability as low, but it can no longer be ignored.