Strategy holds its ground: Strategy reaffirms its Bitcoin course amid investigation and market pressure
Michael Saylor has emerged from the shadows for the first time in a long while. On June 26, he published a statement on X confirming that the company Strategy remains committed to Bitcoin. This came amid two alarming signals simultaneously: a legal investigation into the company's capital structure and growing pressure on the issuer's securities market.
The situation surrounding Strategy is heating up. The law firm Rosen Law Firm has initiated an investigation to determine whether the company's top executives misled investors regarding five securities issuances. No official comments have been received from Strategy yet, which only adds fuel to the fire.
Saylor Doubles Down on Bitcoin
In his post, Saylor avoided directly mentioning the investigation. Instead, he described the current market volatility as a test for the company. According to him, Strategy continues to bet on high credit quality and the creation of long-term value. What Saylor omitted is also telling—not a word about the class-action lawsuit from investors or the decline in the value of preferred securities. Instead, he emphasized discipline in capital management. This is a clear signal addressed to both shareholders and creditors of the company.
On Strategy's balance sheet are 847,363 Bitcoins, accounting for more than 4% of the total that will ever be issued. The company's average purchase price hovers around $75,500 per coin, notably higher than the current rate. This gap has reduced 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.
Strategy acquired most of its Bitcoin through several issuances of preferred shares traded on the exchange. These securities remain under pressure due to the weakening Bitcoin price and declining market confidence in the dividend model.
Market Pressure Tests Strategy's Resolve
The day before Saylor's statement, 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% below par—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 more 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—enough for about a year under current conditions.
My take on the situation: Saylor is betting that Bitcoin will recover to a level allowing debt refinancing without losing control. But the legal investigation could radically change the rules of the game. If regulators prove that investors were misled, confidence in Strategy's capital structure could collapse entirely. In the coming months, the company's fate will be decided—either Saylor will restore market trust, or the investigation will escalate to a new, more dangerous level for the issuer.