Michael Saylor reaffirms loyalty to Bitcoin amid investigation and pressure on Strategy shares
Michael Saylor, Chairman of the Board of Strategy, broke his silence for the first time in a long while. On June 26, he posted a statement on X confirming that the company remains committed to its Bitcoin strategy. This statement came amid two alarming signals: a legal investigation by Rosen Law Firm and growing pressure on the company's capital structure.
Strategy Amid the Storm
In his post, Saylor bypassed the fact of the investigation itself, which aims to determine whether top executives misled investors regarding five securities issuances. Instead, he focused on market volatility, calling it a test for the company. Saylor emphasized that Strategy continues to bet on "high credit quality" and the creation of long-term value, highlighting discipline in capital management.
This signal is directed at both shareholders and creditors. However, what Saylor omitted is notable: he said nothing about the class-action lawsuit from investors or the decline in the value of STRC preferred shares. His message is a response to criticism, but without direct confrontation.
Numbers and Pressure
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, significantly higher than the current rate. Due to this gap, the premium on MSTR shares, which investors paid for indirect leveraged exposure to Bitcoin, has shrunk. At the same time, interest is growing in how the company finances new purchases.
Most of Strategy's Bitcoin was purchased through issuances of exchange-traded preferred shares. These securities are now under pressure due to the weakening Bitcoin price and declining market confidence in the dividend model. The 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% from par value—their yield has reached 15.3%.
The Question of Sustainability
Paying dividends on preferred shares costs the company approximately $1.2 billion per year. For comparison, Strategy recently disclosed only $1.4 billion in cash reserves—enough for about a year under current conditions. Questions about the long-term sustainability of STRC are becoming increasingly pressing.
Expert Opinion: Saylor is betting that Bitcoin will recover faster than his reserves run out. But if the legal investigation enters a new phase and pressure on the dividend model persists, even his charisma may not save the company from a structural crisis. The coming months will be decisive for Strategy's fate.