Michael Saylor reaffirms loyalty to Bitcoin: Strategy navigates amid investigation and market pressure
Michael Saylor broke his silence for the first time in a long while. On June 26, he published a statement on X that can be considered an official confirmation: the company Strategy remains unwavering in its commitment to Bitcoin. This statement came amid two alarming signals simultaneously — an investigation by Rosen Law Firm and growing pressure on the company's capital structure.
The law firm Rosen Law Firm has launched a review to determine whether Strategy's top management misled investors regarding five securities issuances. No official comments have been received from Strategy itself, which only adds fuel to the fire of uncertainty.
Saylor Bets on Credit Quality
In his post, Saylor bypassed the investigation itself. Instead, he called market volatility a "test" for the company. According to him, Strategy continues to bet on high credit quality and long-term value creation. Notably, he made no mention of either the investor class-action lawsuit or the decline in the value of preferred securities. Instead, he emphasized discipline in capital management — a signal aimed at both shareholders and creditors.
Strategy holds 847,363 Bitcoin on its balance sheet — more than 4% of the total that will ever be issued. The average purchase price is around $75,500 per coin, which is noticeably higher than the current rate. Due to this gap, the premium on MSTR shares, which investors paid for indirect leveraged access to Bitcoin, has shrunk. At the same time, interest is growing in how the company finances new purchases.
Strategy purchased most of its Bitcoin 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 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, and STRC preferred shares have dropped 25% relative to par value — their yield reaching 15.3%. Saylor's post appears to be 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.
Cryptalist Analytical Commentary: Saylor masterfully uses the rhetoric of "long-term value" to smooth over rough edges, but the fundamental risks have not gone away. STRC preferred shares are a ticking time bomb: if Bitcoin does not show confident growth in the coming quarters, dividend payments could become an unbearable burden. What we are seeing now is not just a crisis of confidence, but a potential structural crisis of Strategy's model. Whether Saylor can restore investor trust or the investigation escalates to a new legal level will determine the company's fate in the coming months.