Sailor holds course: Strategy reaffirms commitment to Bitcoin amid investigation and market pressure
Michael Saylor, founder and chairman of Strategy, has made a public statement for the first time in a long while. On June 26, he wrote on social media platform X that the company remains unwavering in its commitment to Bitcoin. This statement came amid several alarming signals: the company is facing an investigation by the law firm Rosen Law Firm, and its preferred shares are under significant market pressure.
The Strategy of Silence: What Saylor Didn't Tell Investors
In his post, Saylor sidestepped the very fact of the investigation initiated by Rosen Law Firm. The firm is trying to determine whether Strategy's top management misled investors regarding five securities offerings. Instead, Saylor emphasized capital management discipline and long-term value creation. This telling omission is a signal directed at both shareholders and creditors.
The company's balance sheet holds 847,363 Bitcoin, representing over 4% of the total that will ever be issued. The average purchase price is around $75,500 per coin, notably higher than the current market rate. Due to this gap, the premium on MSTR shares, which investors paid for indirect leveraged exposure to Bitcoin, has significantly shrunk. Now the market is asking: how will the company finance new purchases?
Market Pressure and Schiff's Criticism
The day before Saylor's statement, prominent critic Peter Schiff once again pointed out the weak performance of Strategy's stock. According to his data, MSTR common shares have fallen 84% from their 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, though he did not mention Schiff directly.
Questions about the long-term sustainability of STRC are becoming increasingly acute. Dividend payments on these securities cost the company approximately $1.2 billion per year, while recently disclosed cash reserves amount to only $1.4 billion. Under current conditions, this would last about a year.
My analysis: The situation around Strategy is a classic stress test for a corporate model built on a single asset. Saylor is betting that Bitcoin will recover and surpass the average purchase price, but time is working against him. The Rosen Law Firm investigation could be a catalyst that either forces the company to disclose more details about its financial strategy or leads to new legal risks. In the coming months, we will see whether Saylor can restore market confidence or if the pressure becomes critical.