Strategy faces shareholder legal scrutiny

• Rosen Law Firm is investigating Strategy over potential securities claims and is considering a shareholder class action.
• Strategy shares have fallen below US$100 and declined about 23% over the past week as Bitcoin weakened.
• Critics have questioned the company's Bitcoin treasury strategy, while executive chairman Michael Saylor continues backing the approach.

Rosen Law Firm has launched an investigation into Strategy to assess potential securities claims, saying it is evaluating whether the company made materially inaccurate business disclosures and whether a shareholder class action should proceed.

The investigation comes as Strategy shares have fallen below US$100 and dropped to around US$86, declining about 23% over the past week as Bitcoin (CRYPTO:BTC) weakened following stronger-than-expected U.S. inflation data.

Rosen Law Firm said it is examining whether Strategy misled investors through materially inaccurate business disclosures and is evaluating potential securities claims on behalf of shareholders.

The legal scrutiny follows criticism from Bitcoin commentator Peter Schiff, who argued Strategy's declining share price could eventually force difficult capital allocation decisions, although these comments reflect his opinion rather than established fact.

CryptoQuant also questioned the company's liquidity position, estimating annualised dividend obligations linked to STRC preferred shares have reached about US$1.2 billion while cash reserves have declined by 38% during 2026, although these estimates are those of the analytics firm.

Strategy executive chairman Michael Saylor has continued defending the company's Bitcoin treasury strategy, saying the combined value of its Bitcoin holdings and cash now exceeds outstanding debt by more than US$40 billion.

The investigation does not establish wrongdoing, and Strategy has continued supporting its long-term Bitcoin accumulation strategy despite increased legal scrutiny, market volatility and criticism from some market participants.

At the time of reporting, Bitcoin price was $58,324.20.