Michael Saylor reaffirms loyalty to Bitcoin: Strategy teeters on the edge of legal investigation and market pressure
Michael Saylor stepped out of the shadows for the first time in a long while to make a public statement. On June 26, he published a post on X confirming that the company Strategy remains unwavering in its commitment to Bitcoin. This statement came amid two alarming signals: an investigation initiated by the law firm Rosen Law Firm and growing pressure on the company's capital structure.
The Strategy of Silence: What Saylor Didn't Tell Investors
In his message, Saylor sidestepped 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 signal is directly aimed at shareholders and creditors, who are increasingly concerned about the gap between the price of Bitcoin on the company's balance sheet and the market valuation of its shares.
Strategy holds 847,363 BTC 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, significantly higher than current market quotes. Due to this gap, the premium on MSTR shares, which investors paid for indirect leveraged exposure to Bitcoin, has substantially narrowed.
Market Pressure: Dividend Model Under Question
The situation is exacerbated by the fact that the majority of Bitcoin was acquired through several issues of preferred shares traded on the exchange. These securities are now under pressure due to the weakening of the BTC price and declining market confidence in the dividend model. The day before Saylor's statement, prominent critic Peter Schiff once again highlighted the weak performance of Strategy's shares. According to him, MSTR common stock has fallen 84% from its all-time high, while STRC preferred shares have dropped 25% from par value, with their yield reaching 15.3%.
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 recently disclosed only $1.4 billion in cash reserves. This would last about a year under current conditions.
Cryptalist Analysis: Saylor is trying to go all-in, betting that Bitcoin will recover faster than the company's reserves are depleted. However, the legal investigation and growing pressure on the capital structure could become the very "trap" that forces Strategy to reconsider its strategy. In the coming months, the company's fate will be determined not only by the price of BTC but also by Saylor's ability to restore the trust of institutional investors.