Strategy holds course on bitcoin despite investigation and capital pressure
Michael Saylor emerged from the shadows for the first time in a long while: on June 26, he published a post on X, confirming that Strategy remains committed to its bitcoin strategy. This statement came amid several alarming signals — an investigation by Rosen Law Firm and growing pressure on the company's capital structure.
Notably, Saylor did not directly comment on either the investors' class-action lawsuit or the decline in value of Strategy's preferred shares. Instead, he emphasized discipline in capital management and long-term value creation. This is a targeted signal to both shareholders and creditors — the market must know that the strategy is not changing.
Numbers that speak louder than words
Strategy holds 847,363 bitcoins on its balance sheet, accounting for more than 4% of the total volume that will ever be issued. The average purchase price is around $75,500 per coin, notably higher than the current exchange rate. It is precisely because of this gap that the premium on MSTR shares — which investors paid for indirect leveraged exposure to bitcoin — has contracted.
The company 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 is mounting
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% relative to their 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 — enough for about a year under current conditions.
My expert opinion: Saylor is going all-in, betting that bitcoin will recover faster than the company's reserves are depleted. However, the legal investigation and growing pressure on preferred shares create the risk of a "perfect storm." Whether he can keep the ship afloat is a question that will be decided in the coming months, and the answer will matter for the entire market.