🗣️MicroStrategy, now operating under the name Strategy, is facing a class action lawsuit filed on May 18, 2025, in the U.S. District Court for the Eastern District of Virginia. The lawsuit alleges that the company and certain executives made false or misleading statements regarding the anticipated profitability of its Bitcoin-focused investment strategy and treasury operations, and failed to disclose the risks associated with Bitcoin's volatility. The complaint seeks unspecified damages on behalf of investors who acquired Strategy securities between April 30, 2024, and April 4, 2025.

This legal action coincides with Strategy's recent disclosure of a $5.9 billion unrealized loss in Q1 2025, attributed to the adoption of fair value accounting standards and a decline in Bitcoin prices during the quarter.

Despite these challenges, Strategy announced the acquisition of an additional 7,390 Bitcoins for approximately $765 million between May 12 and May 18, 2025, bringing its total holdings to 576,230 BTC.

As of the latest trading session, Strategy's stock (NASDAQ: MSTR) is priced at $402.22, reflecting a 0.61% increase.

The company has stated its intention to vigorously defend against the claims made in the lawsuit...