Michael Saylor challenges the market: Strategy stays the course on Bitcoin despite investigation
Michael Saylor, the long-standing ideologue of Strategy, has made a public statement for the first time in a while. On June 26, he wrote on social media platform X that the company remains committed to Bitcoin. This statement came amid several alarming signals: a legal investigation, a decline in the value of preferred securities, and growing pressure on the capital structure.
The law firm Rosen Law Firm has launched an investigation to determine whether Strategy's top management misled investors regarding five securities offerings. Saylor did not directly comment on this inquiry in his post. Instead, he called market volatility a "test" and emphasized that the company is betting on high credit quality and creating long-term value.
Notably, Saylor omitted certain topics. He did not mention either the investor class-action lawsuit or the decline in the value of Strategy's preferred securities. Instead, he focused on discipline in capital management. This is a clear signal directed at both the company's shareholders and creditors.
Strategy holds 847,363 Bitcoins on its balance sheet — more than 4% of the total that will ever be issued. The average purchase price is approximately $75,500 per coin, 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 most of its Bitcoin through several issuances of preferred shares traded on the exchange. These securities are currently under pressure due to the weakening Bitcoin exchange rate and declining market confidence in the dividend model.
Market pressure intensifies
The day before Saylor's statement, 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, while STRC preferred shares have dropped 25% relative to par value — 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 more stringent. Paying dividends on these securities costs approximately $1.2 billion per year, while the company recently disclosed only $1.4 billion in cash reserves. This would last about a year under current conditions.
My comment as an analyst: Saylor is betting that the market will reassess the company's strategy after Bitcoin recovers. However, given the current level of debt and the lack of new sources of liquidity, pressure on preferred securities will only intensify. Whether he can restore investor confidence or the investigation escalates to a new legal level will determine Strategy's fate in the coming months.