Rosen Law Firm opened an investigation into potential securities claims on behalf of investors in Strategy Inc. securities, adding a legal overhang to Michael Saylor’s Bitcoin treasury company during a sharp selloff across MSTR and its preferred-stock complex.
The notice covers Strategy securities trading under MSTR, STRF, STRC, STRK and STRD. Rosen said the investigation is tied to allegations that Strategy may have issued materially misleading business information to investors, and that the firm is preparing a class action seeking recovery of investor losses.
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 claims would still have to be tested through litigation.
Complaint Focuses On Bitcoin Strategy Disclosures
The Rosen notice follows earlier class-action allegations over Strategy’s Bitcoin-focused investment strategy, treasury operations and fair-value accounting exposure. A Strategy SEC filing said the May complaint alleged false or misleading statements and omissions tied to expected profitability, Bitcoin volatility and the losses the company could recognize after adopting crypto fair-value accounting rules.
Strategy said in that filing that it intended to vigorously defend against the claims. The company also said it could not predict the outcome or estimate any possible loss tied to the matter.
The legal pressure lands while Strategy’s market structure is already under stress. MSTR recently traded near $87.44 after touching an intraday low of $86.46, while STRC traded near $78.01 after an intraday low of $73.65. Bitcoin traded near $59,273, leaving Strategy’s treasury below its average acquisition cost.
Strategy holds 847,363 BTC, acquired at an average cost of $75,651. That makes Bitcoin’s current price central to both the stock-market reaction and the legal debate around how investors understood the company’s treasury risk.
Preferred-Stock Pressure Adds To The Overhang
The investigation arrives after a brutal week for Strategy-linked securities. Strategy shares fell toward a nearly two-year low as Bitcoin traded below the company’s average purchase price and the market repriced Saylor’s leveraged BTC-equity model.
STRC has become one of the clearest stress points. The preferred stock first fell below $92 earlier this month, then slid 8.2% below par as Bitcoin weakness, dividend obligations and cash-reserve questions intensified. It later dropped below $76, extending the all-time low and pushing the preferred-stock discount far beyond the earlier pressure zone.
That pressure matters because Strategy has used common stock, preferred stock and debt as part of its capital-market engine for Bitcoin accumulation. When MSTR trades strongly and preferred shares stay close to their stated amounts, the structure gives Strategy a cheaper path to raise capital. When the securities fall sharply, investors demand more compensation and the financing loop becomes harder to defend.
Rosen’s investigation now adds legal risk to the market pressure already visible in MSTR and STRC. Strategy holds 847,363 BTC at a $75,651 average cost, Bitcoin trades near $59,273, MSTR sits near $87, and STRC remains far below its $100 stated amount while investor claims around treasury disclosures move toward potential class-action litigation.
