Seilor Holds the Line: Strategy Confirms Loyalty to Bitcoin Amid Investigation and Stock Decline
Michael Saylor broke his silence for the first time in a long while. On June 26, he published a statement on X confirming that Strategy continues to adhere to its Bitcoin strategy. However, this statement came against the backdrop of several alarming signals: a legal investigation by Rosen Law Firm, a decline in the MSTR stock premium, and growing pressure on the company's capital structure.
Saylor did not directly comment on either the investors' class-action lawsuit or the collapse in the value of preferred securities. Instead, he emphasized "discipline in capital management" and "creating long-term value." This is a classic move: when fundamental indicators are under pressure, one must talk about strategy, not numbers. However, the market reads such signals very well.
On Strategy's balance sheet — 847,363 BTC, which constitutes more than 4% of the total ever issued volume. The average purchase price is around $75,500 per coin, notably higher than current market quotes. It is this gap that led to the compression of the premium on MSTR shares, which investors paid for indirect leveraged access to Bitcoin. Now this premium has virtually disappeared.
Particular attention is drawn to the situation with STRC preferred securities. Their yield has soared to 15.3%, and the price has fallen 25% from par value. Peter Schiff, a well-known Bitcoin critic, did not miss the opportunity to remind that MSTR shares have collapsed 84% from their all-time high. Saylor, of course, did not respond directly, but his post appears to be a veiled reaction specifically to this criticism.
Financial Stability Under Question
The key question now is whether Strategy can service dividends on its preferred securities. Annual payments on them amount to about $1.2 billion, while the company's cash reserves are only $1.4 billion. This is enough for roughly one year under current conditions. If Bitcoin does not show confident growth, Saylor will face a tough choice: either seek new sources of financing or revise the dividend policy.
Strategy's fate in the coming months will depend on two factors: whether Saylor can restore investor confidence and whether the Rosen Law Firm investigation escalates into a full-fledged legal process. For now, the market is clearly betting on the latter option.
My analysis: Saylor is betting that Bitcoin will recover faster than the company's reserves run out. This is a risky but not hopeless scenario. However, if pressure on the capital structure continues, Strategy may find itself in a situation where Bitcoin rises but its shares do not. Investors should closely monitor the dynamics of STRC — it is the main indicator of the company's health right now.