Michael Saylor reaffirms commitment to Bitcoin amid investigation into Strategy
Michael Saylor made a public appearance for the first time in a long while: on June 26, he wrote on X that the company Strategy remains committed to Bitcoin. At the same time, the company itself is facing a securities investigation and growing pressure on its capital structure.
The law firm Rosen Law Firm has launched an investigation to determine whether Strategy's top executives misled investors regarding five securities issuances. Strategy has not yet provided any official comments.
Saylor doubles down on Bitcoin
In his post, Saylor did not directly address the investigation. Instead, he described market volatility as a test for the company. According to him, Strategy continues to bet on high credit quality and the creation of long-term value.
What Saylor omitted is also 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—a signal aimed at both the company's shareholders and creditors.
On Strategy's balance sheet are 847,363 Bitcoins, more than 4% of the total that will ever be issued. The company's average purchase price is around $75,500 per coin, notably higher than the current exchange rate. This gap has reduced 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 finances new purchases.
Most of Strategy's Bitcoin was purchased through several issuances of preferred shares traded on the exchange. These securities remain under pressure due to the weakening Bitcoin price and declining market confidence in the dividend model.
Market pressure tests Strategy's resolve
A day before Saylor's statement, 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% below par value—their yield reaching 15.3%. Saylor's post appears to be an indirect response to this criticism, though he did not address it directly.
Questions about the long-term sustainability of STRC are becoming more 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—enough for 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 analysis: The situation around Strategy is a classic stress test for a business model based on corporate Bitcoin accumulation. Saylor is betting that the market will reassess the long-term value of his portfolio, but current liquidity pressures and legal risks may force him to seek alternative sources of financing. For now, the "buy and hold" strategy only works as long as Bitcoin does not fall below critical support levels.