MICHAEL SAYLOR FACES LAWSUIT OVER $5.9B BITCOIN LOSS!

Michael Saylor's company, Strategy Inc. (formerly MicroStrategy), is facing a class-action lawsuit over allegations of misleading investors about the risks associated with its Bitcoin investment strategy. The lawsuit claims that the company failed to disclose the potential losses and volatility linked to its Bitcoin holdings, particularly after adopting new accounting rules (ASU 2023-08) that require fair value accounting for crypto assets.

Key Allegations:

-Misleading Investors: Strategy Inc. allegedly overstated the profitability of its Bitcoin treasury strategy while downplaying risks.

Failure to Disclose: The company didn't properly warn investors about potential losses due to market volatility and changes in accounting rules.

-Unrealized Los: Strategy Inc. reported a $5.91 billion unrealized loss on its Bitcoin holings in Q1 2025, triggering an 8% stock price drop.

Company Response:

Vigorous Defense: Strategy Inc. plans to "vigorously defend" itself against the allegations, stating it can't predict the outcome or estimate costs associated with the lawsuit.

Background:

-Bitcoin Accumulation: Strategy Inc. has accumulated nearly 600,000 Bitcoins, worth approximately $65 billion, making it the largest corporate holder of Bitcoin.

- New Accounting Rules: The company adopted fair value accounting for its Bitcoin holdings, reporting gains and losses as quarterly income .#BTCReclaims110K #Saylor #strategy $BTC #BTC #StrategyBTCPurchase