Sailor holds course: Strategy reaffirms commitment to Bitcoin amid investigation and market pressure
Michael Saylor made a public appearance for the first time in a long while. On June 26, he stated that the company Strategy remains committed to Bitcoin. This statement came amid an investigation by Rosen Law Firm and growing pressure on the company's capital.
The law firm Rosen Law Firm has launched an investigation to determine whether Strategy's top executives misled investors regarding five securities offerings. No official comments from Strategy have been received yet.
Saylor Doubles Down on Bitcoin
In his post, Saylor bypassed the investigation itself in silence. Instead, he called market volatility a "test" for the company. According to him, Strategy continues to bet on high credit quality and the creation of long-term value.
What Saylor omitted is also telling. He did not mention either the class-action lawsuit from investors or the decline in the value of Strategy's preferred securities. Instead, he emphasized discipline in capital management—a signal directed at both the company's shareholders and creditors.
The Numbers Speak for Themselves
On Strategy's balance sheet are 847,363 Bitcoins, representing more than 4% of the total that will ever be issued. The average purchase price is around $75,500 per coin, notably higher than the current rate. Due to this gap, the premium on MSTR shares, which investors paid for indirect leveraged access to Bitcoin, has shrunk.
Strategy purchased 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 Tests Strategy's Resolve
A day before Saylor's speech, 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% from 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 more stringent. 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 analysis: Saylor is betting that Bitcoin will recover faster than the company's reserves run out. This is a high-stakes game: if the market does not turn around in the next 12 months, Strategy could face serious liquidity problems. Whether Saylor can restore investor confidence or the investigation escalates to a new legal level will largely determine Strategy's fate in the coming months.