Saylor Defends Strategy As MSTR Selloff Deepens And STRC Trades 25% Below Par

Michael Saylor responded to Strategy’s latest selloff by saying “volatility tests every capital structure” as pressure spread across MSTR common stock, STRC and the company’s broader preferred-stock complex.

Saylor said Strategy remains focused on Bitcoin, disciplined capital allocation, credit quality and long-term value creation. He also said the company will continue to execute with “transparency and resolve,” a message aimed at investors watching MSTR’s steep drawdown and STRC’s widening discount to par.

MSTR recently traded near $85, leaving the stock down roughly 85% from its November 2024 all-time high near $543. The decline has turned Strategy from one of the strongest Bitcoin-linked equity trades of the last cycle into a live test of how investors price its leveraged Bitcoin treasury model during a major BTC drawdown.

The pressure had already pushed Strategy shares near a two-year low as the company’s Bitcoin treasury moved far below its average acquisition cost. Saylor’s response now lands with both the stock-market decline and the preferred-stock discount still visible across Strategy’s capital stack.

Rosen Probe Adds Legal Overhang

A securities probe opened by Rosen Law Firm covers Strategy securities trading under MSTR, STRF, STRC, STRK and STRD. The investigation centers on potential securities claims tied to allegations that Strategy may have issued materially misleading business information to investors.

The probe does not represent a court finding or regulator action. It is a private securities-law investigation by an investor-rights law firm, and any class-action claims would still have to move through litigation.

The legal pressure adds another layer to Strategy’s market problem. MSTR has fallen sharply alongside Bitcoin, while STRC has moved far below its $100 stated amount. A stock selloff can be absorbed as market volatility, but a securities investigation creates a separate disclosure and investor-loss track at the same time the company is trying to defend its capital-market structure.

The Rosen notice also covers the preferred-stock series that have become central to Strategy’s financing model. That makes the investigation broader than common-stock weakness alone, because Strategy’s Bitcoin accumulation strategy now depends on investor confidence across MSTR and multiple preferred securities.

STRC Discount Tests The Funding Stack

STRC, Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, recently traded near $75.69, placing it about 24% to 25% below its $100 stated amount. The perpetual preferred stock pays an 11.50% annual cash dividend, with the dividend rate adjusted monthly to encourage trading around par.

The preferred-stock stress deepened after STRC dropped below $76, extending the move beyond earlier weakness near $82 and pushing the discount into a range that challenges its role as a stable financing tool.

MSTR and STRC now carry different pressure points inside the same structure. MSTR reflects Bitcoin exposure, market premium, dilution risk and equity issuance. STRC carries cash-dividend expectations, par-value pressure and investor demand for credit-like exposure to Strategy’s Bitcoin model.