Michael Saylor reaffirms commitment to Bitcoin amid legal pressure on Strategy
Michael Saylor, founder and chairman of Strategy, has made a public statement for the first time in a long while. On June 26, he posted on X, reaffirming the company's unwavering commitment to Bitcoin. This statement comes amid a large-scale investigation launched by the law firm Rosen Law Firm and growing pressure on the company's capital structure.
The law firm Rosen Law Firm has initiated an investigation to determine whether Strategy's top executives misled investors regarding five securities offerings. There have been no official comments from Strategy yet. However, in his post, Saylor sidestepped both the investors' class-action lawsuit and the decline in the value of the company's preferred securities. Instead, he emphasized discipline in capital management, calling market volatility a "test" for the company.
Saylor stressed that Strategy continues to focus on high credit quality and the creation of long-term value. This is a signal directed at both shareholders and creditors. Notably, he did not mention the investigation or criticism from prominent investor Peter Schiff, who previously pointed out the weak performance of MSTR shares.
Strategy Under Pressure: Facts and Figures
Strategy holds 847,363 Bitcoin on its balance sheet — more than 4% of the total that will ever be issued. The company's average purchase price is approximately $75,500 per coin, which is noticeably higher than the current rate. Due to this gap, the premium on MSTR shares, which investors paid for indirect leveraged exposure to Bitcoin, has shrunk.
At the same time, interest is growing in how the company finances new purchases. Strategy acquired most of its Bitcoin through several issuances of preferred shares traded on the exchange. These securities are now under pressure due to the weakening Bitcoin price and declining market confidence in the dividend model.
Peter Schiff did not miss the opportunity to criticize the situation. According to him, MSTR shares have fallen 84% from their all-time high, and 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, although he did not address it directly.
Financial Stability in Question
Questions about the long-term stability of STRC are becoming increasingly 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 last 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.
My opinion: Saylor is executing a classic "knight move," trying to shift the focus from legal risks to long-term strategy. However, with the current yield on preferred shares and shrinking cash flow, the company risks facing a liquidity crisis if the Bitcoin price does not recover within the next 12 months. This is not just a stress test — it is a survival exam for the entire Strategy model.