Strategy holds its course on Bitcoin despite investigation and capital pressure: Sailor challenges the market.
Michael Saylor, the steadfast leader of Strategy, broke his silence for the first time in a long while. On June 26, he published a statement on social media platform X, reaffirming the company's unwavering commitment to its Bitcoin accumulation strategy. This statement came amid two alarming signals: an investigation initiated by legal giant Rosen Law Firm into the company and growing pressure on its capital structure.
In his post, Saylor sidestepped the fact of the investigation itself. Instead, he emphasized "market volatility" as a test for the company and underscored that Strategy continues to bet on high credit quality and long-term value creation. This is a characteristic move for him—turning a potential threat into a demonstration of strength and discipline.
What Saylor omitted is also telling. He said nothing about the investors' class-action lawsuit or the decline in the company's preferred stock value. Instead, he shifted the focus to discipline in capital management—a signal directed at both shareholders and creditors. This is an attempt to stabilize the narrative at a time when confidence in Strategy's financing model is beginning to crack.
Holdings Under Pressure: The Numbers Speak for Themselves
On Strategy's balance sheet are 847,363 Bitcoins, representing over 4% of all coins that will ever be issued. The average purchase price stands at around $75,500 per coin, significantly higher than the current market price. This gap has led to a reduction in the premium on MSTR shares, which investors paid for indirect leveraged exposure to Bitcoin.
Most of the Bitcoin was acquired through several issuances of exchange-traded preferred stock. These securities are now under pressure due to Bitcoin's weakening price and declining interest in the dividend model. This creates a vicious cycle: the lower Bitcoin's price, the harder it is for the company to raise capital, and the more expensive it becomes to service existing obligations.
The day before Saylor's statement, prominent critic Peter Schiff once again pointed to the weak performance of Strategy's securities. According to his data, MSTR common stock has fallen 84% from its all-time high, while preferred STRC shares have dropped 25% from par value. Their yield has reached 15.3%, a troubling signal for the market. Saylor's post appears to be an indirect response to this criticism, though he did not address it directly.
The Limits of Capital Resilience
Questions about the long-term sustainability of STRC are becoming increasingly pointed. Paying dividends on these securities costs the company approximately $1.2 billion per year. Meanwhile, Strategy recently disclosed having only $1.4 billion in cash reserves—enough for roughly one year under current conditions. This means the company operates in a constant search for new funding sources to cover its obligations.
Can Saylor restore investor confidence, or will the Rosen Law Firm investigation escalate to a new legal level? The answer to this question will largely determine Strategy's fate in the coming months. In my view, the current situation is a classic stress test for a model that only worked in a rising market. If Bitcoin does not show a confident recovery, Strategy may face the need for a radical overhaul of its financing strategy.