Securities Probe Lands on Strategy as MSTR Sinks and STRC Slips Below Par

Rosen Law Firm opened a securities investigation into Strategy Inc., examining whether the Bitcoin treasury company issued materially misleading disclosures to investors across its entire capital stack, including common shares and all four series of preferred stock.

The investigation notice, published via Business Wire on June 24, covers Strategy's MSTR common shares and its STRF, STRC, STRK, and STRD preferred securities. Rosen said it is preparing a class action to recover investor losses and is seeking a lead plaintiff. The notice is not a filed complaint. Rosen attorney Phillip Kim named the firm's case page at rosenlegal.com/cases/strategy-inc as the contact point for shareholders.

MSTR at Two-Year Low

The probe landed as Strategy's stock hit its weakest level in roughly two years. MSTR fell about 8% on June 25 to approximately $86, its lowest level in roughly two years, according to Unchained. The stock has shed roughly 78% over the past year. Bitcoin traded near $60,162 on Friday, per CoinGecko, down more than 50% from its October 2025 peak above $126,000.

Strategy holds 847,363 BTC, per the company's own purchases page, representing roughly 4% of the asset's total 21 million fixed supply. CEO Phong Le highlighted that figure on Thursday, framing continuous accumulation as deliberate positioning through a downturn. At current prices that stake is worth roughly $50.9 billion, against a total cost basis of approximately $56.3 billion, based on an average purchase price previously reported at $66,384 per coin — leaving the position underwater by several billion dollars at current prices.

STRC Below Par

Much of the legal interest centers on STRC, Strategy's variable-rate perpetual preferred. It was marketed as a stable income product engineered to trade near its $100 par value. STRC fell to around $76 Thursday, roughly 24% below par, its deepest discount since issuance. The Defiant first reported STRC's record-low squeeze in June, tracking how a sub-par preferred price tightens one of Strategy's main Bitcoin funding channels.

When STRC trades below par, Strategy can no longer use preferred issuance to raise capital at face value to fund Bitcoin purchases. Strategy sold 32 BTC in late May, its first Bitcoin sale since 2022, covering preferred dividends, a disclosure that stoked concerns about the sustainability of the funding model.

Probe Scope and Prior Suits

The Rosen investigation is not the first legal action tied to Strategy's capital markets activity. A Pomerantz class action filed in 2025 already targets the company over its adoption of fair-value crypto accounting and a $5.91 billion quarterly unrealized loss. Rosen's notice, by contrast, focuses on alleged misleading information across all five listed Strategy securities and does not cite a specific class period or dollar figure for alleged investor losses.

Analysts frame the current equity selloff as a confidence problem rather than an insolvency one, with Strategy executives issuing coordinated investor reassurances even as STRC hit record lows.

Strategy has made no public statement addressing the Rosen investigation as of Friday morning.