MicroStrategy (Strategy) Faces Class Action Lawsuit Over Bitcoin Strategy Amid $5.9B Q1 Loss - Still Buys More BTC!
MicroStrategy, now rebranded as "Strategy," is under fire after a class action lawsuit was filed against the company and top executives, including Michael Saylor, CEO Phong Le, and CFO Andrew Kang.
The lawsuit, led by investor Anas Hamza, alleges that Strategy made misleading statements and failed to properly disclose the risks and potential losses tied to its aggressive Bitcoin investment strategy and new accounting rules.
🔍 Key Details
Lawsuit filed in Virginia accuses Strategy of overstating profitability and downplaying the risks of Bitcoin’s volatility and the impact of new fair-value accounting rules.
$5.9 billion unrealized Q1 loss reported after adopting new accounting standards that require Bitcoin holdings to be marked to market.
Stock dropped 8.7% after the loss was disclosed in April.
Complaint seeks damages for investors who bought shares between April 30, 2024, and April 4, 2025.
🔥 But Strategy Isn’t Slowing Down:
Despite the legal heat, Strategy just purchased another 7,390 BTC for $765 million last week, bringing its total Bitcoin holdings to 576,230 #BTC - now valued at around $59 billion. The company’s average purchase price for its Bitcoin stash is $69,726 per coin, with an unrealized gain of $19.2 billion at current prices.
💬 Michael Saylor remains defiant:
“My formula for success is rise early, work late, and buy Bitcoin.”
The company says it will vigorously defend itself against the lawsuit, and there’s no sign of a change in strategy.
Will this high-stakes bet pay off, or is Strategy risking it all?