Strategy co-founder Michael Saylor has pushed back against critics following a sharp decline in the company’s STRC preferred stock, which dropped below its $100 par value and sparked allegations of fraudulent practices. In a June 20 post on X, Saylor emphasized that Strategy’s Bitcoin and cash reserves currently exceed its outstanding debt by roughly $48 billion. He highlighted that since 2022, the firm has raised over $60 billion in additional capital, channeling those funds into Bitcoin purchases.
To contrast the current situation with previous challenges, Saylor recalled the 2022 crypto bear market when Strategy held about 130,000 Bitcoin valued at around $2.6 billion while Bitcoin traded near $20,000. After the cryptocurrency fell below $16,000, the company’s debt temporarily surpassed the combined value of its Bitcoin and cash reserves by approximately $300 million. During that period, MSTR stock dropped from approximately $24 to the $13 range on a split-adjusted basis.
Saylor stated, “We stayed focused, strengthened the company, and executed our strategy. Since then, Strategy has raised over $60 billion of additional capital and invested it in Bitcoin, adding more than 716,000 BTC.”
The comments come as investors debate the sustainability of Strategy’s financing model following STRC’s recent decline. Bitcoin critic Peter Schiff escalated concerns by suggesting investors could pursue legal action against Strategy and Saylor, arguing that Saylor may have violated SEC marketing rules in promoting the preferred stock offering.
Some market observers propose selling Bitcoin as a potential fix. Arca Chief Investment Officer Jeff Dorman suggested the company might need to sell between $3 billion and $4 billion worth of Bitcoin to reduce pressure on its capital structure and support STRC holders. While Dorman assigned a 25% probability to that outcome, his base-case scenario (70% probability) involves Strategy continuing to sell small amounts of MSTR stock, leaving Bitcoin holdings largely intact but potentially causing additional downside for common shareholders.
Despite intensifying criticism, several Bitcoin advocates have defended Saylor and Strategy. Fox and Sky News contributor David Gokhshtein argued that Bitcoin’s current market value cannot be attributed to a single individual, criticizing efforts to blame Saylor for broader market movements and dismissing comparisons between Strategy and the collapsed Terra ecosystem. Bitcoin advocate Samson Mow described STRC as a “brilliant instrument” and stated that he sees no structural flaw unless investors believe Bitcoin will fail to appreciate over the long term.
Separate liquidity concerns have emerged, with market maker QCP estimating that Strategy’s available resources could cover preferred dividend obligations for roughly seven and a half months. QCP added that if existing financing channels become less attractive, alternative funding options—including Bitcoin sales—may eventually be required.