- Lawsuit alleges the company made “misleading statements” with respect to BTC investments.
- The class-action lawsuit comes even as Strategy added $764.9 million Bitcoin at near-record prices.
Strategy, formerly MicroStrategy, announced on May 19, 2025, that it had acquired 7,390 Bitcoin for $764.9 million. The purchases were made at $103,498 per BTC.
The purchase coincided with a disclosure that the company was embroiled in a class action suit filed at the U.S District Court for the Eastern District of Virginia. The case cites that the company’s executives, including Michael Saylor, misrepresented the risk associated with the Bitcoin-focused investment strategy and treasury operations.
Critics have also argued that the firm’s disclosure did not effectively state possible losses associated with Bitcoin’s volatility.
Strategy stated its commitment to vigorously defend against the class-action suit. The company still admits it is not certain about the outcome or possible losses which could erode investors’ confidence.
See Related: Coinbase’s Class-Action Lawsuit Against Their One-Sided Policies
What To Expect Amid Strategy Lawsuit
Industry experts expect the legal challenge to potentially affect Strategy’s reputation as investors question the communication and transparency of its crypto approach. These concerns stem from how the Bitcoin-related decisions have been shared publicly.
However, some industry observers, like 0xngmi, the founder of DefiLlama, claim that the Strategy’s approach was transparent.
He shared in the statement: “The lawsuit seems to be people complaining that MicroStrategy understated how much money it could lose if BTC went down but if you’re buying a company that is self-labelled as “leverage on bitcoin”, what do you expect? it’s pretty clear what will happen if BTC goes down.”
MicroStrategy is known for its large investment in Bitcoin, with the latest addition elevating the firm’s holdings to 576,230 BTC. The total value is estimated at more than $59 billion at current BTC prices, with an unrealized gain of about 47%.
