Michael Saylor reaffirms loyalty to Bitcoin amid investigation and pressure on Strategy
Michael Saylor, co-founder and chairman of Strategy, broke his silence for the first time in a long while. On June 26, he posted a statement on social media platform X reaffirming the company's commitment to Bitcoin. This statement came amid two negative factors: an investigation by the law firm Rosen Law Firm and growing pressure on the company's capital structure.
Rosen Law Firm initiated an investigation to determine whether Strategy's top management misled investors regarding five securities offerings. No official comments have been made by Strategy itself, which only fuels interest in the situation.
Saylor: Discipline Over Panic
In his post, Saylor avoided directly mentioning the investigation and the investors' class-action lawsuit. Instead, he emphasized market volatility as a "test for the company." According to him, Strategy continues to bet on high credit quality and the creation of long-term value.
Notably, Saylor remained silent about the decline in the value of preferred securities and the drop in the MSTR stock premium. His message was aimed more at shareholders and creditors: a signal of discipline in capital management appears to be an attempt to calm the market without delving into details.
Strategy currently holds 847,363 BTC on its balance sheet — more than 4% of all Bitcoins that will ever be issued. The average purchase price is around $75,500 per coin, notably higher than the current exchange rate. This gap has led to a significant reduction in 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. Strategy 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: A Test of Strength
A day before Saylor's statement, well-known critic Peter Schiff once again criticized the weak performance of Strategy's stock. According to his data, MSTR shares have fallen 84% from their all-time high, and STRC preferred shares have dropped 25% below par value — 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 increasingly tough. Dividend payments on these securities cost approximately $1.2 billion per year, while the company recently disclosed only $1.4 billion in cash reserves. This would last about a year under current conditions.
My expert opinion: Saylor is going all-in. His statement is not just support for Bitcoin, but an attempt to stabilize confidence in Strategy's complex financial structure. Whether he can restore investor trust or the investigation escalates to a new legal level will determine the company's fate in the coming months. The market will be closely watching every move.