Michael Saylor returned to public messaging on Jun. 26 as Strategy faced legal scrutiny, weaker securities and a $1.2 billion annual dividend burden tied to its Bitcoin(BTC) model. Key Points
Michael Saylor returned to public messaging on Jun. 26 as Strategy faced legal scrutiny, weaker securities and a $1.2 billion annual dividend burden tied to its Bitcoin(BTC) model.
- Saylor reaffirmed Strategy’s Bitcoin focus after Rosen Law Firm began examining statements tied to five securities.
- Strategy holds 847,363 BTC, but its average purchase price remains near $75,500.
- Pressure has grown around preferred securities, including STRC, as dividend costs test cash reserves.
Saylor did not address the securities review directly in his post on X, choosing instead to describe volatility as a test of long-term discipline.
Rosen Law Firm launched the investigation into whether Strategy executives made materially misleading statements across five linked securities, while the company had not issued a formal response.
The omission mattered because the post came as investors questioned the company’s capital structure, preferred stock prices and ability to keep financing Bitcoin purchases during a drawdown.
Strategy holds 847,363 Bitcoin, or more than 4% of the total supply that will ever exist, with an average acquisition cost near $75,500 per coin.
That position once helped support a premium in MSTR, as investors paid for leveraged Bitcoin exposure through the stock.
That premium has narrowed as Bitcoin traded below Strategy’s cost basis, putting more attention on the company’s funding tools and preferred securities.
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Peter Schiff sharpened criticism a day before Saylor’s post, saying MSTR had fallen 84% from its all-time high and that STRC had dropped 25% from par.
Schiff also said STRC carried an implied yield of 15.3%, a level that reflected investor concern over the durability of Strategy’s dividend model.
Those concerns now center on cash coverage, because Strategy’s preferred stock dividend structure is estimated to cost about $1.2 billion a year.
The company disclosed a $1.4 billion cash reserve on Jun. 22, leaving roughly one year of coverage at the current rate.
Saylor’s statement worked as an indirect defense of the strategy, but it did not answer whether legal pressure or higher yields could slow future Bitcoin accumulation. Strategy’s position is the result of a yearslong shift that began in 2020, when the company turned Bitcoin buying from a treasury decision into its central corporate identity.
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