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. Summary Michael Saylor defended Strategy’s Bitcoin strategy as STRC plunged below its $100 par value. Peter Schiff floated fraud allegations while questioning Strategy’s promotion of STRC shares. Jeff Dorman suggested selling up to $4 billion in Bitcoin could ease capital structure pressure. 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. When I gave this speech in October 2022, Bitcoin traded near $20,000, Strategy held 130,000 BTC worth about $2.6 billion, and $MSTR 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… pic.twitter.com/nWl9YlN11s— Michael Saylor (@saylor) June 20, 2026 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. 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. “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. The comments arrived as investors debated the implications of STRC’s recent decline and questioned whether the company’s financing model remains sustainable. Bitcoin critic Peter Schiff escalated those concerns by suggesting that investors could pursue legal action against Strategy and Saylor. Schiff also argued that Saylor may have violated SEC marketing rules through the way he promoted the preferred stock offering. Some investors see Bitcoin sales as the simplest solution Recent pressure on STRC has also prompted alternative proposals from market observers. As previously reported 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. 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. Supporters reject comparisons to Terra While criticism has intensified, several Bitcoin advocates have publicly defended Saylor and Strategy. Fox and Sky News contributor David Gokhshtein argued 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. Those comparisons gained traction after crypto analyst Ali Martinez suggested similarities between 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. $STRC 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.There’s nothing…— Samson Mow (@Excellion) June 19, 2026 Separate concerns have also emerged around liquidity. Market maker QCP previously estimated 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 may eventually be required, with Bitcoin sales remaining one possible path.
