Source: Cointelegraph
Original: (Strategy company spent $765 million to purchase 7,390 Bitcoins and subsequently faced a class-action lawsuit)
Strategy (formerly MicroStrategy), as a top corporate Bitcoin (BTC) holder, purchased nearly $765 million worth of Bitcoin last week. This purchase coincides with the company facing a class-action lawsuit.
According to an announcement on May 19, Strategy acquired 7,390 Bitcoins at an average price slightly below $103,500, totaling approximately $764.9 million. Strategy reported a year-to-date return of 16.3% on its Bitcoin holdings.
According to a filing submitted to the U.S. Securities and Exchange Commission (SEC) on May 19, the company recently faced a class-action lawsuit. The lawsuit alleges that Strategy's executives failed to accurately present the essential characteristics of Bitcoin investments.
As of May 18, Strategy holds 576,230 Bitcoins, having invested approximately $40.18 billion, with an average cost of $69,726 per Bitcoin. Based on the latest market prices, the total value of the company's Bitcoin holdings exceeds $59.2 billion, with unrealized gains of $19.2 billion and a return rate of 47%.
According to CoinMarketCap data, the trading price of Bitcoin is approximately $102,615, with a 20.3% increase over the past month.
In a recent announcement, "a class action lawsuit was filed in the U.S. District Court for the Eastern District of Virginia against" the company's executives, including Executive Chairman Michael Saylor, President and CEO Phong Le, and Executive Vice President and CFO Andrew Kang.
Strategy executives are accused of "violating Section 10(b) of the Securities Exchange Act of 1934 (as amended) (the 'Exchange Act') and Rule 10b-5 thereunder, as well as Section 20(a) of the Exchange Act." The document states:
"[The lawsuit claims] the named defendants made false and/or misleading statements regarding our Bitcoin-focused investment strategy and financial operations, as well as various risks associated with Bitcoin volatility, and/or failed to disclose relevant information."
Strategy's Bitcoin reserve strategy has inspired several other companies to follow suit. Last week, luxury watch manufacturer Top Win announced it would adopt a Bitcoin accumulation strategy and rename itself AsiaStrategy, causing its stock price to soar more than 60% in pre-market trading.
AsiaStrategy stated that it is working with Sora Ventures to implement its plan, a partnership that previously co-created Japan's first corporate Bitcoin reserve with Metaplanet in 2024. Metaplanet currently holds more Bitcoin than El Salvador. Also last week, a Bahrain-listed restaurant company with a market value of $24.2 million partnered with investment firm 10X Capital to adopt a Bitcoin reserve strategy.
Related news: Revolut aims for a French license and $1.1 billion expansion, accelerating EU business growth.
