Michael Saylor Says Strategy Reserves Exceed Debt Amid STRC Slide

Highlights:

• Michael Saylor says Strategy’s reserves now exceed debt by about $48 billion.
• STRC’s fall below par has renewed debate over preferred stock funding.
• Supporters rejected comparisons to Terra, while critics questioned dividend pressure.

Michael Saylor defended Strategy’s Bitcoin treasury plan after STRC preferred shares dropped far below their $100 par target. The response followed fresh criticism over the company’s funding model, which uses equity and preferred stock sales to buy Bitcoin. 

Michael Saylor Points Back to the 2022 Drawdown

On June 20, via a post on X, Michael Saylor linked the current debate to an earlier speech, when Bitcoin traded near $20,000. Strategy held about 130,000 BTC worth roughly $2.6 billion. Then Bitcoin fell below $16,000, and debt exceeded Bitcoin plus cash reserves by about $300 million. The same period also crushed MSTR shares. The stock traded near $24 on a split-adjusted basis during the speech. By year-end, it had fallen into the $13 range as crypto markets weakened.

However, the company held its Bitcoin position and kept raising capital after that period. Since then, Strategy has raised more than $60 billion and added over 716,000 BTC, according to Saylor. He said Bitcoin and USD reserves now exceed debt by around $48 billion.

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

STRC Slide Puts Strategy’s Financing Model Under Pressure

The comments came as STRC, Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, faced heavy market pressure. Strategy created STRC as a high-yield preferred security with monthly rate adjustments. The company designed the structure to trade near $100 while providing cash dividends.

STRC recently fell into the low-to-mid $80s, well below its par value. That drop lifted the effective yield for new buyers above the stated dividend rate. It also raised questions about future funding for Bitcoin purchases. Strategy has used STRC and other securities as part of its capital strategy. However, the fall below par has limited that channel, since issuing more shares at depressed prices could weaken investor confidence. 

The company recently repurchased about $1.5 billion of 2029 convertible notes at a discount. That move reduced debt but also lowered cash reserves. Strategy reported $871 million in USD reserves after those transactions in late May. 

Meanwhile, reports of a small Bitcoin sale in late May added another point of debate. Strategy sold 32 BTC for approximately $2.5 million, and the proceeds were used to fund its dividends. The sale garnered attention because the company has long emphasized a hold-focused Bitcoin strategy. Later, Strategy CEO Phong Le said that the sale was a “small and planned step” to test the company’s process and calm the market.

Supporters Reject Terra Comparisons as Debate Widens

Bitcoin critic Peter Schiff has led the strongest attacks against the company’s model. He said investors could sue Strategy and Saylor for the promotion and the decline of STRC. But Schiff also alleged that Michael Saylor could have committed a violation of SEC marketing rules. The remarks added some legal language to a discussion that was already about dividends, leverage, and Bitcoin exposure.

If you are a retiree who bought $STRC last month and you have already lost 15% of your principal, don't worry. You likely have an ironclad lawsuit against $MSTR, so long as you purchased based on @Saylor's promotion that touted the yield without properly disclosing the high risk.

— Peter Schiff (@PeterSchiff) June 18, 2026

However, other market voices pushed back against those claims. David Gokhshtein said Bitcoin’s price action should not rest on one executive or one company. He also rejected comparisons between Strategy and the Terra collapse. Bitcoin advocate Samson Mow also defended STRC and called it a strong instrument. He said the structure only looks flawed to investors who doubt Bitcoin’s long-term appreciation.

At the time of this writing, BTC was trading around $63,220, up by 0.30% on the daily chart. Its market cap and trading volume stand at $1.26 trillion and $17 billion, respectively. Meanwhile, Strategy’s stock, MSTR, is down by more than 4% at $112.53 today, according to data from Google Finance