Rosen Law Firm has launched an investigation into potential securities law violations by Strategy Inc., the largest publicly traded corporate holder of Bitcoin. The review covers common shares (MSTR) and preferred securities (STRC, STRF, STRK, STRD) and follows a series of moves that have unsettled investors, including a rare Bitcoin sale to fund dividend payments.
The probe, announced on June 24, does not yet constitute a lawsuit or finding of wrongdoing. Instead, the firm is evaluating whether Strategy provided materially misleading business information or omitted key facts under federal securities laws. It encourages shareholders who purchased those securities to come forward.
The investigation comes shortly after Strategy disclosed selling 32 Bitcoin to help cover preferred share dividends — a departure from Chairman Michael Saylor’s long-held buy-and-hold stance. The company has also been raising capital through additional preferred stock offerings to finance further Bitcoin purchases, fueling concerns about shareholder dilution and financial sustainability during market volatility.
Separately, Galaxy Research Director Alex Thorn analyzed Strategy’s newly announced “digital credit capital framework,” which includes a dollar reserve policy, a $1 billion buyback authorization for preferred and common shares, a dividend yield increase for STRC to 12%, and a Bitcoin monetization plan. While Thorn acknowledged the moves as a significant milestone, he warned that they may not resolve structural issues, especially the company’s $6.7 billion in convertible bonds maturing in 2027 and 2028.
The market’s main concern, Thorn noted, is whether Strategy has sufficient dollar liquidity to meet obligations without harming Bitcoin holders or common shareholders. He flagged the monetization plan as controversial, stating that selling Bitcoin could erode the company’s long-term investment narrative and weaken MSTR’s premium. The shares and preferred stock rallied on the announcement, but uncertainty remains as the legal review progresses.
