Sailor holds course: Strategy reaffirms commitment to Bitcoin amid investigation and market pressure
Michael Saylor broke his prolonged silence. On June 26, he issued a public statement reaffirming that Strategy remains committed to its bitcoin strategy. This statement came at an extremely tense moment for the company: the law firm Rosen Law Firm initiated an investigation into Strategy's top management on suspicion of misleading investors during five securities offerings. No official comments from the company have been received yet.
In his post, Saylor bypassed both the investors' class-action lawsuit and the decline in the value of preferred securities. Instead, he focused on "market volatility as a test" and emphasized the company's commitment to "high credit quality and long-term value creation." This signal was clearly aimed at shareholders and creditors needing reassurance of capital management discipline.
Strategy holds 847,363 bitcoins on its balance sheet, accounting for over 4% of the total ever issued. However, the company's average purchase price is approximately $75,500 per coin, significantly higher than current market quotes. This gap has led to a compression of the premium on MSTR shares, which investors previously paid for leveraged indirect exposure to bitcoin. Now, the market is increasingly scrutinizing how the company finances new purchases.
Market Pressure and Criticism
A day before Saylor's statement, prominent critic Peter Schiff once again pointed out the weak performance of Strategy's shares. According to his data, MSTR common shares have fallen 84% from their all-time high, while STRC preferred shares have lost 25% of their par value, with 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 acute. Dividend payments on these securities cost the company approximately $1.2 billion per year, while Strategy recently disclosed only $1.4 billion in cash reserves. This would last about a year under current conditions. Whether Saylor can restore investor confidence or the investigation escalates to a new legal level will largely determine the company's fate in the coming months.
Analyst's Comment: The situation surrounding Strategy is a classic example of how an aggressive asset accumulation strategy collides with the realities of market correction and regulatory pressure. For now, Saylor has a "safety cushion" in the form of cash reserves, but if bitcoin does not show a sustained recovery, the company may face the need to restructure its debt. Investors should closely monitor the development of the investigation — it could become a catalyst for a reassessment of the entire Strategy model.