Strategy, formerly known as MicroStrategy and the leading corporate holder of Bitcoin, has acquired nearly $765 million worth of the cryptocurrency last week. This substantial purchase occurred as the company disclosed facing a class-action lawsuit.
In a May 19 announcement, Strategy revealed it acquired 7,390 BTC for approximately $764.9 million at an average price just under $103,500 per coin. The company also reported a year-to-date Bitcoin yield of 16.3%. Strategy’s executive chairman, Michael Saylor, hinted at the acquisition in a May 18 post on X.
However, a separate filing with the U.S. Securities and Exchange Commission (SEC), also dated May 19, revealed that the firm is the target of a class-action lawsuit. The suit alleges that Strategy officials failed to accurately represent the nature of their Bitcoin investments.
As of May 18, Strategy holds a total of 576,230 BTC, acquired for around $40.2 billion at an average price of $69,726 per Bitcoin. Based on current market prices, the company’s total Bitcoin holdings are valued at over $59.2 billion, representing an unrealized gain of $19.2 billion, or 47%. According to CoinMarketCap data at the time of reporting, Bitcoin was trading around $102,615, marking a 20.3% increase over the past month.
The SEC filing details that the lawsuit was filed in the U.S. District Court for the Eastern District of Virginia against key company executives, including chairman Michael Saylor, president and CEO Phong Le, and executive vice president and chief financial officer Andrew Kang.
The lawsuit alleges “violations of Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 10b-5 thereunder, and Section 20(a) of the Exchange Act.” Specifically, the suit claims that the named defendants made “false and/or misleading statements with respect to and/or failed to disclose information with respect to the anticipated profitability of our Bitcoin-focused investment strategy and treasury operations, and the various risks associated with bitcoin’s volatility.”
