The firm is investigating whether Michael Saylor’s bitcoin treasury company fed investors misleading information, soliciting shareholders across the entire capital stack.

Rosen Law Firm said on June 24 that it had opened a securities investigation into Strategy Inc., the bitcoin treasury company run by Michael Saylor, examining whether the firm issued materially misleading business information to investors. The notice solicits shareholders who bought any of Strategy’s securities, naming the MSTR common stock and its STRF, STRC, STRK, and STRD preferred shares.

It seeks a lead plaintiff and is not itself a filed complaint.

The probe landed during Strategy’s sharpest stretch of selling pressure in years. MSTR dropped about 8% on June 25 to roughly $86.15, its lowest level since February 2024, and is down 78% over the past year. Bitcoin traded near $59,300, more than 50% below its October 2025 peak above $126,000. Strategy holds 847,363 BTC, a stake now worth about $50.2 billion against a cost of roughly $64 billion.

Much of the strain centers on STRC, the variable-rate preferred that Strategy marketed as a stable income product engineered to trade near its $100 par value. It has fallen to about $76, roughly 24% below par, lifting its effective yield above 15%. With the premium MSTR long commanded over its bitcoin now compressed to near parity, Saylor can no longer issue shares cheaply to fund purchases. A June 22 filing showed Strategy bought 520 BTC that week using common stock alone, with no preferred shares sold. The preferred has kept sliding from the roughly $89 then-record low it held earlier this month. The price at time of publication is $76.13.

Analysts frame the episode as a crisis of confidence rather than solvency. Strategy still holds about $1.4 billion in dollar reserves, enough for roughly 10 months of dividend obligations and decades of coverage measured in bitcoin. “Saylor’s repeated pivots and deviations from his stated plans, alongside poor performance of STRC and MSTR, have broken that trust,” Alexander Blume, CEO of Two Prime said on Thursday. Benchmark’s Mark Palmer has argued that STRC trading below par makes Strategy’s funding engine less efficient, not broken.

The Rosen notice is the latest of several. A securities class action filed by Pomerantz in 2025 already targets Strategy over its adoption of fair-value crypto accounting and a $5.91 billion quarterly loss, and other firms, including Robbins Geller, are pursuing related claims. For investors, the open question is whether the damage to STRC’s reputation as a low-risk income vehicle outlasts the bitcoin downturn that caused it.

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