Strategy holds its ground: Strategy reaffirms commitment to Bitcoin amid investigation and stock crash
Michael Saylor broke his silence for the first time in a long while. On June 26, he published a statement confirming that Strategy remains unwavering in its bet on Bitcoin. This statement came amid two alarming signals simultaneously: a legal investigation by Rosen Law Firm and growing pressure on the company's capital structure.
Lawyers at Rosen Law Firm are investigating whether Strategy's top management misled investors regarding five securities offerings. No official comments have been received from the company itself, which only fuels market interest in the details of the case.
In his post, Saylor sidestepped both 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 was a signal addressed to both shareholders and creditors: the company is not deviating from its chosen path, despite the turbulence.
Strategy currently holds 847,363 Bitcoin on its balance sheet—more than 4% of the total that will ever be issued. The average purchase price is approximately $75,500 per coin, significantly higher than the current market 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 finances new purchases.
Market Pressure and Structural Risks
The day before Saylor's statement, Peter Schiff once again criticized the weak performance of Strategy's stock. According to him, MSTR common shares have fallen 84% from their all-time high, while STRC preferred shares have dropped 25% from par value, with their yield reaching 15.3%. Saylor's post appears as an indirect response to this criticism, although he did not address it directly.
Questions about the long-term sustainability of STRC are becoming increasingly stringent. 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.
My expert opinion: Saylor is betting that Bitcoin will recover faster than his reserves are depleted. But if the price remains at current levels or falls lower, Strategy could face a cascading liquidity crisis. The Rosen Law Firm investigation only adds uncertainty—and it is this uncertainty that is currently weighing on the market more heavily than the numbers themselves.