Michael Saylor’s strategy is facing renewed scrutiny as falling Bitcoin prices place its enormous corporate treasury more than $14.5 billion below its acquisition cost.
Notably, the pressure intensified after Rosen Law Firm announced an investigation into possible securities claims involving Strategy and Saylor. The inquiry focuses on whether the company may have provided materially misleading business information to investors, although the firm has not publicly detailed the disputed statements.
Bitcoin Decline Pushes Strategy Deep Below Cost
Strategy held 846,842 $BTC as of June 14, acquired for approximately $64.07 billion at an average price of $75,656 per coin.
The company later added another 520 $BTC, bringing its reported holdings to 847,363 $BTC. With Bitcoin trading well below Strategy’s average purchase price, market estimates place the position more than $14.5 billion underwater, or roughly 22% below cost.
This figure represents a paper loss rather than a completed trading loss. Its size changes alongside Bitcoin’s market price and would only become realized if Strategy sold coins below their purchase cost.
Strategy previously reported a $14.46 billion unrealized digital-asset loss for the quarter ending March 31. That accounting result reflected the decline in Bitcoin’s fair value during the reporting period, not necessarily the exact position on the day of the latest Rosen announcement.
The first-quarter adjustment contributed to a $12.54 billion net loss. Strategy also recorded a related deferred tax benefit as the value of its Bitcoin assets moved below their carrying cost.
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Rosen Opens Securities Investigation
Meanwhile, Rosen Law Firm said it is examining whether Strategy and Saylor may have issued misleading information to the investing public.
The announcement represents an early-stage investigation, not a court judgment or proof that securities laws were violated. Rosen invited investors who purchased Strategy securities to provide information as the firm evaluates whether grounds exist for a potential claim.
No specific statement, transaction, or reporting period was identified in the public notice. Strategy had not released a formal response addressing the new inquiry at the time of reporting.
The investigation follows earlier shareholder litigation concerning Strategy’s disclosures, Bitcoin volatility, and its use of performance measures such as $BTC yield and $BTC gain.
A separate case filed in 2025 alleged that Strategy presented overly positive assessments of its Bitcoin treasury model while failing to explain adequately how fair-value accounting could produce substantial earnings losses. Those allegations remain separate from Rosen’s latest review.
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Strategy Keeps Adding Bitcoin
Despite the paper losses, Strategy has maintained its core plan of increasing both its total Bitcoin holdings and Bitcoin exposure per share.
Purchases have largely been financed through common-stock sales, preferred securities, and other capital-market programs. This approach has made Strategy’s balance sheet, earnings, and share price increasingly sensitive to movements in Bitcoin.
Even so, the company also maintains a U.S. dollar reserve intended to support preferred-stock dividends and interest payments. However, weaker Bitcoin prices, falling securities values, and continued capital raising have renewed questions about dilution and financing costs.
Strategy has not indicated that the Rosen investigation will alter its Bitcoin policy. Its position remains unrealized, while the legal review has yet to produce a complaint or formal finding.
