Strategy challenges the market: Holding course on bitcoin despite investigation and pressure
Michael Saylor emerged from the information shadows for the first time in a long while. On June 26, he published a statement on X confirming that Strategy remains committed to its bitcoin strategy. This came against the backdrop of several alarming signals: a legal investigation by Rosen Law Firm and growing pressure on the company's capital structure.
In his post, Saylor bypassed both the class-action lawsuit from investors and the decline in the value of Strategy's preferred shares. Instead, he emphasized capital management discipline and long-term value creation. This was a clear signal — to both shareholders and creditors — that the company does not intend to deviate from its chosen course.
Strategy holds 847,363 bitcoins on its balance sheet, representing over 4% of the total ever issued. The average purchase price is around $75,500 per coin, significantly higher than the current rate. It is this gap that has led to the compression of the MSTR stock premium, which investors paid for indirect leveraged exposure to bitcoin. That premium has now virtually disappeared, and the market is asking: how will the company finance new purchases?
Market Pressure and Vulnerability of Preferred Shares
The day before Saylor's statement, Peter Schiff once again criticized the weak performance of Strategy's stock. 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. The yield on the latter has reached 15.3% — an alarming signal for the debt market.
Paying dividends on these shares costs the company approximately $1.2 billion per year, while recently disclosed cash reserves amount to only $1.4 billion. Under current conditions, this will last about a year. The question of STRC's long-term sustainability is becoming increasingly acute.
My expert opinion: Saylor is betting that bitcoin will recover faster than the company's reserves run out. This is an extremely risky but consistent move. If the BTC price does not return to levels above $75,500 within the next 12 months, Strategy could face a serious liquidity crisis, and the legal investigation would then be just the tip of the iceberg.