Michael Saylor reaffirms loyalty to Bitcoin: Strategy balances on the edge of investigation and market pressure
Michael Saylor, founder and ideological driving force behind Strategy, has stepped into the public eye for the first time in a long while. On June 26, he stated on social media platform X that the company maintains an unwavering commitment to Bitcoin. This statement came amid two serious challenges simultaneously: an investigation by the law firm Rosen Law Firm and growing pressure on Strategy's capital structure.
In his post, Saylor remained silent about the investigation itself, which was initiated to determine whether the company's top executives misled investors regarding five securities offerings. Instead, he focused on market volatility as a "test" and emphasized discipline in capital management. According to him, the company's strategy continues to be built on creating long-term value through high-quality credit.
What Saylor omitted is also telling. Not a word about the investors' class-action lawsuit, nor about the decline in the value of STRC preferred shares. The signal was directed straight to shareholders and creditors: we are staying the course despite the storm.
Numbers that speak louder than words
Strategy's balance sheet holds 847,363 BTC, accounting for more than 4% of all Bitcoin that will ever be mined. The average purchase price per coin is approximately $75,500, notably higher than current market quotes. This gap has already led to a compression of the premium on MSTR shares, which investors previously paid for indirect leveraged access to Bitcoin.
The situation with STRC preferred shares is even more tense. The day before Saylor's statement, analyst Peter Schiff once again criticized the dynamics: MSTR shares fell 84% from their all-time high, while STRC dropped 25% from par value, with their yield soaring to 15.3%. Dividend payments on these securities cost the company approximately $1.2 billion per year, while recently disclosed cash reserves amount to only $1.4 billion—enough for about a year under current conditions.
My analysis: A test of resilience
Saylor's statement is undoubtedly an attempt to calm the market and show that the company's fundamental strategy remains unchanged. However, the silence about the investigation and the disregard for the falling preferred shares raise questions. The issue is not whether Saylor believes in Bitcoin—that is obvious. The issue is the sustainability of Strategy's financial model in an environment where the market is questioning the company's very ability to service its debt. Can Saylor restore investor confidence, or will the investigation escalate into a full-blown legal crisis? The next few months will be critical for the company's fate.