Bitcoin treasury firm Strategy is facing renewed market and legal pressure after Rosen Law Firm announced an investigation into potential securities claims involving the company and its public disclosures to investors.
The investor rights law firm said it is reviewing allegations that Strategy may have issued materially misleading business information to the investing public. The review covers Strategy’s common stock and preferred securities, including MSTR, STRF, STRC, STRK, and STRD.
The investigation comes as Strategy’s securities remain under pressure from falling Bitcoin prices, concerns over shareholder dilution, and weakness in its preferred stock structure. MSTR fell more than 9% and reached a 28-month low, while STRC touched a new all-time low near $74, placing it about 26% below its $100 par value.
Rosen Law Firm Reviews Potential Investor Claims
Rosen Law Firm said investors who purchased Strategy securities may be entitled to seek compensation through a contingency fee arrangement if a class action proceeds. The firm said it is preparing a potential claim to recover investor losses, although no court finding of wrongdoing has been cited.
The review focuses on whether Strategy’s public statements accurately reflected the company’s business condition, Bitcoin treasury strategy, capital markets activity, and preferred securities obligations. The probe adds legal attention to a company already closely followed because of its position as one of the largest corporate Bitcoin holders.
Strategy, formerly known as MicroStrategy, has built its market identity around Bitcoin accumulation. The company’s model has relied on capital raises, preferred stock issuance, convertible instruments, and equity-linked structures to fund BTC purchases and maintain liquidity.
That model drew strong investor interest during Bitcoin’s earlier rally, but recent market conditions have raised questions about whether new capital raises remain accretive for existing shareholders. Investors have also focused on whether lower stock prices make future financing more difficult.
STRC Weakness Adds Pressure to Strategy’s Financing Model
STRC has become a central concern after falling to around $74, marking a 26% decline from par value. The drop has pushed the security’s yield higher, with market analysts placing the current yield near 15.3%.
Source: X
Earlier market analysis showed STRC had already fallen to $82.50 last week, then a record 17.5% below its $100 par value. The decline has occurred alongside a weaker Bitcoin market and concerns that Strategy’s cash reserve has narrowed.
Strategy repurchased $1.5 billion of its 0% convertible senior notes due 2029 in May, reducing available cash that could support preferred dividend obligations. An analysis saw the company’s U.S. dollar cash reserve has fallen 38% since the start of 2026, while annualized dividend obligations have risen to about $1.2 billion.
Bitcoin Losses Weigh on MSTR Stock
Strategy holds approximately 847,363 BTC at an average purchase price of about $75,651 per coin. With Bitcoin recently trading near $59,000 to $61,000, the company is sitting on an estimated aggregate unrealized loss of about $12.6 billion on its Bitcoin holdings.
Economist Peter Schiff intensified his criticism of Strategy’s Bitcoin strategy as MSTR and STRC continued to fall. Schiff said MSTR’s share price had dropped below $85.50 and argued that the stock could begin trading at a deep discount to the company’s Bitcoin per-share value.
Schiff said the decline in STRC, which recently traded about 24% below its issue value, shows growing pressure on Strategy’s preferred stock structure. He also pointed to STRC’s rising yield, which is near 15.3%, as a sign that investors are demanding greater compensation for holding the security.
According to Schiff, Strategy’s current position leaves the company with fewer attractive options. He argued that issuing new securities while MSTR and STRC remain under pressure could weaken shareholder value, while selling Bitcoin at current prices would realize losses on coins purchased at higher levels.
Schiff said the company’s best route to create shareholder value would be to sell part of its Bitcoin holdings and use the proceeds to repurchase discounted MSTR shares. In his view, buying back stock could help narrow any gap between MSTR’s market price and the value of Bitcoin held per share.
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