Strategy, which holds a lot of bitcoin, is facing new legal and market pressures. According to the United States law firm Rosen Law Firm, an assessment is being made of whether the company has been significantly misleading in its public disclosure to investors, and the review covers both general shares and multiple priority securities, including MSTR, STRF, STRC, STRK and STRD.
Assessment of claims initiated by the firm
Rosen Law Firm states that a review of potential securities claims has been initiated and that a study has been undertaken on the possibility of advancing class actions on behalf of investors buying the relevant securities. The current focus is to verify that Strategy ' s past public statements reflect the firm ' s business performance, the Bitcoin Treasury strategy, capital market operations and the obligations associated with preferred securities.
There is no mention in the current report that the courts have found that Strategy was guilty of an offence, but this investigation has given the company renewed legal attention. Strategy continues to be at the centre of the market mainly because of its long-term financing of bitcoin and its becoming one of the largest listed companies in the world.
Finance model constraints
Strategy used to rely mainly on equity financing, debt transfer, priority equity and other equity-linked instruments, and then used the funds to increase the amount of bitcoin and maintain liquidity. This model, which attracted a large number of investors in the context of the Bitcoin boom, has recently lagged behind in the market and has begun to reassess whether the financing structure still benefits existing shareholders.
One of the market concerns is whether future refinancing difficulties for companies will increase as stock prices weaken. If new securities continue to be issued, there is a risk that the value of existing shareholders will be accumulated; if the Bitcoin replenishment is sold, there is a risk that the book losses will be converted to actual losses.
STRC discounts expanded
Among the multiple types of financing instruments in Strategy, the STRC has recently become the focus of market attention. According to the report, the security price fell to approximately $74 at one time, about 26 per cent below the nominal value of $100, and the corresponding rate of return rose to about 15.3 per cent. The previous week, STRC had also fallen to $82.5, a discount of approximately 17.5 per cent on the face value at the time.
At the same time as the StRC was weak, the price of bitcoin was at a low level of shock, further exacerbating the market ' s concern about the cash buffer capacity of Strategy. The report mentioned that the company had repurchased $1.5 billion in May, 0 per cent of the transferable bills due in 2029, an operation that reduced the cash available to support the priority share dividends obligation.
- STRC around 26% discount on face value
- Markets measure the current rate of return at about 15.3 per cent
- The company's annualized bonus obligation is about $1.2 billion.
Bitcoinfloat amplified.
As at the time of reporting, Strategy held approximately 847,363 BTCs, at an average purchase cost of approximately $75,651 per unit. The unrealized losses for this part of the company ' s warehouse are estimated at approximately $12.6 billion, based on the most recent range of transactions in bitcoin between $5.9 million and $61,000.
The report refers to a market view that Strategy ' s alternative financing path is being narrowed under the simultaneous pressure of MSTR and STRC. On the one hand, the cost of continuing to issue new securities may increase; on the other hand, the sale of bitcoin in the current price range would confirm the loss of the previously high-purchased portion.
Overall, the survey has not yet reached a judicial conclusion, but it has been combined with stock price reversals, weak priority securities and a Bitcoin book losses, further exacerbating the market ' s interest in Strategy ' s follow-up financing capacity and financial flexibility.