The company Strategy, formerly known as MicroStrategy, while a legal action is ongoing, has taken another bold step in its journey towards leadership in the bull world of cryptocurrencies.
Last week, the company led by Michael Saylor announced the purchase of 7,390 Bitcoin for a total value of approximately 764.9 million dollars, at an average price of just under 103,500 dollars per unit.
The operation was made public through an official document filed on May 19 with the Securities and Exchange Commission (SEC) of the United States.
However, as anticipated, while Strategy strengthens its position as the main corporate holder of Bitcoin, it is simultaneously at the center of a class action lawsuit.
The lawsuit, filed in the United States District Court for the Eastern District of Virginia, accuses the company’s executives of providing misleading information about the profitability of the investment strategy in Bitcoin.
Furthermore, the accusation is also of not having adequately communicated the risks related to its extreme volatility.
A new maxi-purchase of BTC by Strategy while the legal action rages
Despite the legal controversies, the numbers are clear: as of May 18, Strategy held 576,230 BTC, purchased in total for about 40.18 billion dollars, with an average price of 69,726 dollars per coin.
At current market values, these holdings are worth over 59.2 billion dollars, generating an unrealized gain of 47%, equal to 19.2 billion dollars.
The year-to-date performance of the company’s Bitcoin strategy is 16.3%, a result that strengthens the long-term vision of Michael Saylor and his team, despite the judicial turmoils.
The legal case directly involves the main executives of the company: Michael Saylor, executive chairman, Phong Le, president and CEO, and Andrew Kang, executive vice president and chief financial officer.
According to the accusation, the executives allegedly violated several provisions of the Securities Exchange Act of 1934, in particular sections 10(b) and 20(a), in addition to the rule 10b-5.
The legal document argues that the executives have made false or misleading statements regarding the expected profitability of the investment strategy in Bitcoin and have not transparently disclosed the risks associated with the volatility of the cryptocurrency.
These are serious accusations that could have significant repercussions on the reputation and future operations of the company.
The acquisition of Strategy comes at a particularly favorable time for the cryptocurrency market. According to CoinMarketCap data, the price of Bitcoin at the time of writing is around 102,615 dollars, with an increase of 20.3% in the last month.
This positive trend has undoubtedly contributed to strengthening the company’s confidence in its accumulation strategy.
A model that inspires other companies
The vision of Strategy has not remained isolated. More and more companies are adopting a treasury strategy in Bitcoin, inspired by the success of the American company.
A recent example is that of the luxury watch manufacturer Top Win, which saw its shares rise by over 60% in pre-market trading after announcing the intention to accumulate Bitcoin and changing its name to AsiaStrategy.
AsiaStrategy has announced a collaboration with Sora Ventures to implement the new strategy. Sora Ventures had already worked with Metaplanet in 2024 to create the first corporate Bitcoin treasury in Japan.
Today, Metaplanet holds more Bitcoin than El Salvador itself, the first country in the world to have adopted Bitcoin as legal tender. Even in the Middle East, there are signs of interest.
A publicly traded catering company based in Bahrain, with a market capitalization of $24.2 million, has recently adopted a similar strategy in collaboration with the investment firm 10X Capital.
The current context places Strategy in a complex but potentially advantageous position. On one hand, the company continues to strengthen its leadership in the cryptocurrency sector, with a strategy that has already produced significant returns.
On the other hand, the legal accusations could undermine investor confidence and draw the attention of regulatory authorities.
However, the impact of the lawsuit will likely be determined by the company’s ability to demonstrate the transparency of its communications and the solidity of its financial strategy.
In a constantly evolving market like that of cryptocurrencies, investor confidence is built not only on numbers but also on the credibility and integrity of corporate leaders.
Conclusions: between risks and opportunities
The purchase of 7,390 Bitcoin by Strategy represents a further confirmation of its long-term vision on the future of cryptocurrencies.
Despite the legal challenges, the company continues to be a point of reference for businesses that want to integrate Bitcoin into their treasury strategies.
The growing adoption of similar models by other companies, in Asia as well as in the Middle East, suggests that the Bitcoin corporate treasury could become an increasingly widespread trend.
It remains to be seen if Strategy will be able to overcome the legal difficulties and consolidate its role as a pioneer in the crypto-financial world. But one thing is certain: with over 576,000 BTC in its portfolio, the stakes are higher than ever.
