Strategy holds its ground: Strategy reaffirms commitment to Bitcoin amid investigation and market pressure
Michael Saylor, founder and visionary of Strategy, broke his public silence for the first time in a long while. On June 26, he published a statement on X, confirming that his company remains committed to its Bitcoin strategy. This move came amid two alarming signals simultaneously: a legal investigation by Rosen Law Firm and growing pressure on the company's capital structure.
Saylor, as always, is diplomatic. In his message, he does not mention either the class-action lawsuit from investors or the decline in the value of Strategy's preferred securities. Instead, he emphasizes discipline in capital management, calling market volatility a "test for the company." This is a direct signal to both shareholders and creditors: we are not deviating from the path.
On Strategy's balance sheet — 847,363 bitcoins, representing over 4% of the total that will ever be issued. The average purchase price is around $75,500 per coin. This is noticeably higher than the current exchange rate, creating a gap between the value of the company's assets and the price of its shares. The premium on MSTR shares, which investors paid for indirect leveraged access to Bitcoin, has significantly narrowed.
Investigation and pressure on preferred securities
The law firm Rosen Law Firm has launched an investigation to determine whether Strategy's top management misled investors regarding five securities issuances. No official comments have been received from Strategy yet, but the very fact of such an investigation puts pressure on the company's reputation.
The day before Saylor's statement, well-known critic 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 securities have dropped 25% from par value, with their yield reaching 15.3%. Saylor's post appears as an indirect response to this criticism, although he did not address it directly.
Financial sustainability in question
Paying dividends on preferred securities costs the company approximately $1.2 billion per year. Meanwhile, Strategy recently disclosed only $1.4 billion in cash reserves. This would last about a year under current conditions. Questions about the long-term sustainability of STRC are becoming increasingly stringent.
Expert conclusion
Saylor is once again playing the "long game," but the stakes are getting higher every day. The market no longer believes in the unconditional premium of MSTR, and the Rosen Law Firm investigation could become a catalyst for a deeper correction. Whether Saylor can restore investor confidence or the legal pressure escalates to a new level will determine Strategy's fate in the coming months. For now, his statement seems more like a gesture of desperation than a confident step forward.