Michael Saylor reaffirms loyalty to Bitcoin: Strategy stays the course amid investigation and market pressure
On June 26, Michael Saylor made a rare public appearance, stating on X that Strategy 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.
Lawyers from Rosen Law Firm have begun investigating whether Strategy's top management misled investors regarding five securities issuances. No official comments from the company have been made yet, but Saylor's reaction speaks for itself—he chose not to offer excuses but to demonstrate confidence.
Saylor Doubles Down on Bitcoin
In his post, Saylor sidestepped both the investors' class-action lawsuit and the decline in the value of Strategy's preferred shares. Instead, he emphasized discipline in capital management and long-term value creation. This is a signal to both shareholders and creditors: the company is not deviating from its path despite the turbulence.
Strategy holds 847,363 Bitcoin on its balance sheet, representing over 4% of the total supply that will ever be issued. The average purchase price is around $75,500 per coin, significantly higher than the current price. Due to this gap, the premium on MSTR shares—which investors paid for indirect leveraged exposure to Bitcoin—has shrunk. The issue of financing new purchases is becoming increasingly acute.
The company acquired most of its Bitcoin through several issuances of preferred shares traded on the exchange. These securities are now under pressure due to the weakening Bitcoin price and declining market confidence in the dividend model.
Market Pressure Tests Strategy's Resolve
The day before Saylor's statement, Peter Schiff once again criticized Strategy's weak stock performance. According to him, MSTR shares have fallen 84% from their all-time high, while STRC preferred shares have dropped 25% below 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 more pressing. Dividend payments on these securities cost approximately $1.2 billion per year, while the company recently disclosed only $1.4 billion in cash reserves—enough to cover about one year under current conditions.
Analytical conclusion: Saylor is betting that the market will revalue Bitcoin to levels above $75,000; otherwise, Strategy will face serious liquidity problems. The Rosen Law Firm investigation adds legal risk, but for now, the market does not foresee catastrophic consequences. The key question is whether Saylor can maintain investor confidence and find new sources of financing before the pressure becomes critical.