Michael Saylor reaffirms commitment to Bitcoin amid pressure on Strategy
Michael Saylor, co-founder and chairman of Strategy, has made a public statement for the first time in a long while. On June 26, he wrote on X that the company remains committed to Bitcoin. This statement comes amid an investigation by the law firm Rosen Law Firm, which is examining whether Strategy's top executives misled investors regarding five securities offerings.
Saylor did not directly comment on the investigation in his post. Instead, he described market volatility as a test for the company. According to him, Strategy continues to focus on high credit quality and creating long-term value. What he omitted is also telling: not a word about the class-action lawsuit from investors or the decline in the value of preferred securities. Instead, the emphasis was on discipline in capital management—a signal aimed at both shareholders and creditors.
Strategy holds 847,363 Bitcoin on its balance sheet, representing more than 4% of the total supply that will ever be issued. The company's average purchase price remains around $75,500 per coin, notably higher than the current market 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.
Market Pressure Tests Strategy's Resolve
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% below par value, with their yield reaching 15.3%. Saylor's post appears to be an indirect response to this criticism, though 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 a year under current conditions. Whether Saylor can restore investor confidence or the investigation escalates to a new legal level will largely determine Strategy's fate in the coming months.
My opinion: The situation surrounding Strategy is a classic example of how an aggressive asset accumulation strategy collides with macroeconomic reality. Until Bitcoin returns to levels above $80,000, pressure on the company's balance sheet will only intensify. Saylor is betting that the market simply hasn't matured enough to appreciate his long-term play, but time is not on his side.