Strategy holds course amid investigations and capital pressure as Saylor bets on bitcoin
Michael Saylor, founder and visionary of Strategy, has finally broken his silence. On June 26, he published a statement on X confirming that the company remains committed to its Bitcoin strategy despite growing pressure. This is Saylor's first public appearance in a long time, and it coincides with the start of an investigation by the law firm Rosen Law Firm, which is examining whether Strategy's top executives misled investors regarding five securities offerings.
Saylor, as expected from an experienced strategist, did not directly comment on the investigation. Instead, he shifted the focus to market volatility, calling it a "test" for the company. He emphasized that Strategy continues to bet on high credit quality and the creation of long-term value. Notably, he bypassed the shareholder class action lawsuit and the decline in the value of preferred shares, focusing instead on discipline in capital management. This is a signal addressed to both shareholders and creditors.
Numbers That Speak Louder Than Words
Strategy's balance sheet holds 847,363 Bitcoin, representing more than 4% of the total supply that will ever be issued. The average purchase price is around $75,500 per coin, noticeably higher than the current exchange rate. This gap has led to a compression of 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 acquired 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.
Market Pressure: A Test of Strength
The day before Saylor's statement, prominent critic 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% from par value—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 tough. 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.
My analysis: The situation surrounding Strategy is a classic stress test for the "Bitcoin treasury" model. Saylor is trying to maintain confidence, but pressure from regulators and falling security values create risk. Whether he can restore investor trust or the investigation escalates to a new legal level will determine Strategy's fate in the coming months. Personally, I believe that at the current Bitcoin level and with rising STRC yields, the company will either need to find new sources of financing or reconsider its dividend policy.