Saylors confirms commitment to Bitcoin: Strategy navigates amid investigation and market pressure
Michael Saylor, founder of Strategy, has made a public statement for the first time in a long while. On June 26, on social network X, he confirmed that the company remains unwavering in its bet on Bitcoin. This statement came amid two alarming signals: an investigation by the law firm Rosen Law Firm and growing pressure on the company's capital structure.
Notably, in his post, Saylor sidestepped the class-action lawsuit from investors and the decline in the value of Strategy's preferred securities. Instead, he emphasized discipline in capital management and long-term value creation. This message, in my view, was addressed not so much to the general public as to shareholders and creditors, whose confidence in the sustainability of the company's model is now being severely tested.
Giant portfolio under pressure
Strategy holds 847,363 Bitcoins on its balance sheet — that's over 4% of the total amount that will ever be issued. The average purchase price is around $75,500 per coin, significantly higher than current market quotes. This gap has led to a reduction in the premium on MSTR shares, which investors paid for indirect access to Bitcoin with leverage. Now, interest is shifting to the question of how the company will finance new purchases.
Preferred securities under fire
The bulk of the Bitcoin reserves were acquired through several issues of preferred shares traded on the exchange. These securities are now under dual pressure: a weakening Bitcoin price and a decline in market confidence in the dividend model. The day before Saylor's statement, analyst Peter Schiff once again criticized the performance of Strategy's shares. According to his data, MSTR common stock has fallen 84% from its all-time high, while STRC preferred shares have lost 25% of their par value, with their yield reaching 15.3%.
Saylor's post appears to be an indirect response to this criticism, although he did not directly address it. However, 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's recently disclosed cash reserves total only $1.4 billion. This is enough for just one year under current conditions.
Expert opinion: Saylor is betting that the market will once again appreciate his strategy as soon as Bitcoin begins a new rally. However, if the Rosen Law Firm investigation moves into the legal arena, it could create serious risks for the entire capital structure of the company. Whether Saylor can restore investor confidence or the investigation escalates to a new level — this question will largely determine Strategy's fate in the coming months.