Saylor holds course: Strategy reaffirms commitment to bitcoin amid investigation and market pressure
Michael Saylor has emerged from the information shadows for the first time in a long while. On June 26, he published a statement on X confirming that Strategy remains committed to its Bitcoin strategy. This statement came amid two serious challenges: an investigation by the law firm Rosen Law Firm and growing pressure on the company's capital structure.
A Signal Amid the Silence
In his post, Saylor did not directly comment on the investigation initiated by Rosen Law Firm to determine whether Strategy's top executives misled investors regarding five securities offerings. Instead, he focused on 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. No official comments from Strategy itself have been made yet.
Notably, what Saylor omitted is also significant. He did not mention the class-action lawsuit from investors or the decline in the value of Strategy's preferred shares. Instead, he emphasized discipline in capital management—a signal directed at both the company's shareholders and creditors.
Numbers and Pressure
Strategy holds 847,363 Bitcoin on its balance sheet, representing over 4% of the total supply that will ever be issued. The average purchase price per coin stands at around $75,500, notably higher than the current exchange 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 purchased the majority of its Bitcoin through several issuances of preferred shares traded on the exchange. These securities are currently under pressure due to the weakening Bitcoin price and declining market confidence in the dividend model.
Schiff's Criticism and the Dividend Issue
A day before Saylor's statement, Peter Schiff once again criticized the weak performance of Strategy's stock. According to him, MSTR shares have fallen 84% from their all-time high, while STRC preferred shares have dropped 25% below par value—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 pressing. Dividend payments on these securities cost approximately $1.2 billion annually, while the company recently disclosed only $1.4 billion in cash reserves—enough for about a year under current conditions.
My view as an analyst: Saylor undoubtedly remains the most consistent institutional bull on Bitcoin. However, the current situation is a stress test for his entire model. Whether he can restore investor confidence or the investigation escalates to a new legal level will largely determine Strategy's fate in the coming months. The market is waiting not just for words, but for concrete recapitalization actions.