Seilor Holds Its Ground: Strategy Reaffirms Commitment to Bitcoin Amid Investigation and Market Pressure
Michael Saylor has emerged from the shadows for the first time in a long while. On June 26, he made a public statement on X, confirming that the company Strategy remains committed to its Bitcoin strategy. This came at a critical moment: amid an official investigation by the law firm Rosen Law Firm and growing pressure on the company's capital structure.
Silence on Air: What Saylor Chose to Omit
In his post, Saylor sidestepped 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 was a clear signal, addressed to both shareholders and creditors: the company is not deviating from its chosen path, despite the turbulence.
Strategy currently holds 847,363 BTC on its balance sheet — that's over 4% of all Bitcoin that will ever be mined. The average purchase price is around $75,500 per coin, notably higher than the current market rate. It is this gap that has led to a compression of the premium on MSTR shares, which investors previously paid for indirect leveraged exposure to Bitcoin.
Market Pressure: A Test for Preferred Shares
The day before Saylor's statement, Peter Schiff once again criticized the weak performance of Strategy's stock. According to his data, common MSTR shares have fallen 84% from their all-time high, while preferred STRC 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, though he did not address it directly.
Questions about the long-term sustainability of STRC are becoming increasingly acute. Paying dividends on these shares costs the company approximately $1.2 billion per year. Meanwhile, Strategy recently disclosed only $1.4 billion in cash reserves — enough for about a year under current conditions.
My analysis: Saylor is trying to manage the narrative, shifting focus from short-term problems to long-term strategy. However, the market does not forgive uncertainty. Whether he can restore investor confidence or whether the Rosen Law Firm investigation escalates to a new legal level will determine Strategy's fate in the coming months. For now, Bitcoin bulls are holding the line, but pressure is mounting.