Michael Saylor Breaks Silence as Strategy Faces Probe and Market Pressure
Michael Saylor broke his public silence on June 26 with a post on X reaffirming Strategy's commitment to Bitcoin, as the company faces a securities investigation and widening pressure across its capital structure. Rosen Law Firm launched the probe, examining whether Strategy executives made materially misleading statements across five linked securities. The company has issued no formal response. Saylor's statement is notable for what it omits: no mention of the class action interest or sharp declines in Strategy's preferred securities. Strategy holds 847,363 Bitcoin (BTC), over 4% of all Bitcoin that will ever exist, with an average acquisition cost near $75,500 per coin, above current prices. The MSTR premium has compressed, and preferred stocks like STRC face pressure due to weakening Bitcoin prices and eroding investor confidence in the dividend model. The day before Saylor posted, critic Peter Schiff escalated criticism, noting MSTR fell 84% from its all-time high and STRC dropped 25% from par, implying a 15.3% yield. Saylor's post served as an indirect rebuttal. Questions about STRC's sustainability have grown, with an estimated $1.2 billion annual dividend cost and a $1.4 billion cash reserve barely covering a year. Whether Saylor's reaffirmation steadies confidence or the probe escalates may define Strategy's near-term trajectory.
Key facts
- Rosen Law Firm probes Strategy for potentially misleading statements on five securities.
- Saylor reaffirms Bitcoin focus on X, ignoring class action and preferred stock declines.
- Strategy holds 847,363 BTC with average cost ~$75,500, above current prices.
- STRC preferred stock dropped 25% from par, with $1.2B annual dividend cost.
- Strategy's $1.4B cash reserve barely covers one year of STRC dividend payments.