Law Firm Investigates Strategy as MSTR Drops 7% and STRC Crashes to $73

Rosen Law Firm announced this week that it is investigating potential securities claims against Strategy Inc. and Executive Chairman Michael Saylor, as the company’s stock hit a 52-week low on Thursday and its flagship preferred shares collapsed to record lows.

MSTR dropped 7.3% to a 52-week low of $86.41, while STRC, Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, fell to $73.62—roughly 26% below its $100 par value. Bitcoin also weakened, falling to around $58,035 at session lows before recovering to the $59,000 range, adding pressure across Strategy’s capital structure.

The New York-based plaintiff firm is soliciting investors who purchased Strategy securities, including MSTR common stock and preferred series STRF, STRC, STRK, and STRD, and incurred losses. No class action has been filed. The investigation targets whether the company “may have issued materially misleading business information to the investing public,” according to a Business Wire press release.

Key concerns include that approximately 80% of STRC is reportedly held by retail investors, as the product was marketed through Fidelity’s brokerage platform with an initial annualized dividend of roughly 11.5%. Strategy’s CEO Phong Le purchased STRC shares for his own children. With STRC now more than 26% below par, market observers point to retail selling as a contributing factor.

Strategy, formerly MicroStrategy, holds 847,363 BTC acquired at an average price of roughly $75,651 per coin, putting its bitcoin cache deeply underwater in terms of net value today. The company remains the world’s largest publicly traded corporate bitcoin holder.

Rosen Law says it is preparing a class action, but such investigation notices are common in volatile sectors and do not guarantee a lawsuit will be filed or claims will succeed. Allegations remain unproven. Strategy has not issued a public response as of publication.

Source: https://news.bitcoin.com/law-firm-investigates-strategy-as-mstr-drops-7-and-strc-crashes-to-73/