MSTR

<p class="is-style-lead">Strategy co-founder Michael Saylor has defended the company’s Bitcoin-backed capital strategy after its STRC preferred stock fell well below its $100 par value and triggered fresh criticism from market participants.</p><div id="cn-block-summary-block_26554d96153ee6e6d9e2799460912e9a" class="cn-block-summary"><div class="cn-block-summary__nav tabs"><span class="tabs__item is-selected">Summary</span></div><div class="cn-block-summary__content"><ul class="wp-block-list"><li>Michael Saylor defended Strategy’s Bitcoin strategy as STRC plunged below its $100 par value.</li><li>Peter Schiff floated fraud allegations while questioning Strategy’s promotion of STRC shares.</li><li>Jeff Dorman suggested selling up to $4 billion in Bitcoin could ease capital structure pressure.</li></ul></div></div><p>According to a June 20 X post by Saylor, Strategy’s Bitcoin and cash reserves currently exceed its outstanding debt by approximately $48 billion. He noted that the company has raised more than $60 billion in additional capital since 2022 and used those funds to acquire Bitcoin.</p><figure class="wp-block-embed is-type-rich is-provider-x wp-block-embed-x"><div class="wp-block-embed__wrapper"><blockquote class="twitter-tweet"><p>When I gave this speech in October 2022, Bitcoin traded near $20,000, Strategy held 130,000 BTC worth about $2.6 billion, and <a href="https://x.com/search?q=%24MSTR&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$MSTR</a> was ~$24 split-adjusted. Weeks later, after Bitcoin fell below $16,000, our debt exceeded the combined value of our BTC and cash reserves by ~$300… <a href="https://t.co/nWl9YlN11s" rel="noopener noreferrer nofollow">pic.twitter.com/nWl9YlN11s</a></p>— Michael Saylor (@saylor) <a href="https://x.com/saylor/status/2068278654455488789?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">June 20, 2026</a></blockquote></div></figure><p>To illustrate the contrast with today, Saylor pointed to Strategy’s position during the 2022 crypto bear market. At the time, the company held around 130,000 Bitcoin worth roughly $2.6 billion while Bitcoin traded near $20,000.</p><p>After the cryptocurrency fell below $16,000, Strategy’s debt temporarily exceeded the combined value of its Bitcoin and cash reserves by about $300 million. During the same period, MSTR stock declined from around $24 to the $13 range on a split-adjusted basis.</p><blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"><p>“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,” said Saylor.</p></blockquote><p>You might also like: <a href="https://crypto.news/cz-proposes-freezing-satoshi-bitcoin-stash-to-stop-quantum-theft/" rel="noopener noreferrer nofollow"> CZ proposes freezing Satoshi Bitcoin stash to stop quantum theft </a></p><p>The comments arrived as investors debated the implications of STRC’s recent decline and questioned whether the company’s financing model remains sustainable.</p><p>Bitcoin critic Peter Schiff escalated those concerns by suggesting that investors could <a href="https://crypto.news/peter-schiff-accuses-michael-saylor-of-misleading-strc-buyers/" rel="noopener noreferrer nofollow">pursue legal action</a> against Strategy and Saylor. Schiff also argued that Saylor may have violated SEC marketing rules through the way he promoted the preferred stock offering.</p><h2 class="wp-block-heading" id="some-investors-see-bitcoin-sales-as-the-simplest-solution">Some investors see Bitcoin sales as the simplest solution</h2><p>Recent pressure on STRC has also prompted alternative proposals from market observers.</p><p>As previously <a href="https://crypto.news/arcas-jeff-dorman-sees-only-one-fix-for-strategys-strc-crisis/" rel="noopener noreferrer nofollow">reported</a> by crypto.news, Arca Chief Investment Officer Jeff Dorman suggested the company may eventually need to sell between $3 billion and $4 billion worth of Bitcoin to ease pressure on its capital structure and support STRC holders.</p><p>While Dorman assigned a 25% probability to that outcome, he said his base-case scenario, with a 70% probability, involves Strategy continuing to sell small amounts of MSTR stock. Under that scenario, Bitcoin holdings would remain largely intact, though common shareholders could face additional downside.</p><h2 class="wp-block-heading" id="supporters-reject-comparisons-to-terra">Supporters reject comparisons to Terra</h2><p>While criticism has intensified, several Bitcoin advocates have publicly defended Saylor and Strategy.</p><p>Fox and Sky News contributor David Gokhshtein <a href="https://x.com/davidgokhshtein/status/2068143318475714748" rel="noopener noreferrer nofollow">argued</a> on X that Bitcoin’s current market value cannot be attributed to a single individual. He criticized efforts to blame Saylor for broader market movements and dismissed comparisons between Strategy and the collapsed Terra ecosystem.</p><p>Those comparisons gained traction after crypto analyst Ali Martinez suggested <a href="https://crypto.news/ali-martinez-warns-strategys-strc-mirrors-terras-danger-loop/" rel="noopener noreferrer nofollow">similarities between</a> STRC and Terra’s LUNA token structure. Responding to the debate, Bitcoin advocate Samson Mow described STRC as a “brilliant instrument” and stated that he sees no structural flaw in the security unless investors believe Bitcoin will fail to appreciate over the long term.</p><figure class="wp-block-embed is-type-rich is-provider-x wp-block-embed-x"><div class="wp-block-embed__wrapper"><blockquote class="twitter-tweet"><p><a href="https://x.com/search?q=%24STRC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$STRC</a> is a brilliant instrument. It’s effectively what I tried to do with Bitcoin Bonds: strip out the volatility from Bitcoin and share the upside with investors. There is a massive market for a product like this somewhere in the ballpark of $200 trillion.<br><br>There’s nothing…</p>— Samson Mow (@Excellion) <a href="https://x.com/Excellion/status/2067861360227041360?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">June 19, 2026</a></blockquote></div></figure><p>Separate concerns have also emerged around liquidity. Market maker QCP previously <a href="https://crypto.news/qcp-warns-strategy-may-sell-more-bitcoin-to-fund-dividends/" rel="noopener noreferrer nofollow">estimated</a> that Strategy’s available resources could cover preferred dividend obligations for roughly seven and a half months.</p><p>QCP added that if existing financing channels become less attractive, alternative funding options may eventually be required, with Bitcoin sales remaining one possible path.</p><p>Read more: <a href="https://crypto.news/xrp-ledger-upgrade-exposes-hidden-flaws-across-network/" rel="noopener noreferrer nofollow"> XRP Ledger upgrade exposes hidden flaws across network </a></p>

Michael Saylor fires back as STRC crash sparks fraud claims

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