- Strategy acquired 7,390 BTC in mid-May 2025, increasing total bitcoin holdings to over 576,000 despite ongoing legal pressure.
- The class action alleges the firm failed to disclose key accounting changes affecting crypto asset reporting to investors.
- Top executives, including Michael Saylor, are directly named in the lawsuit filed under federal securities fraud regulations.
A class action lawsuit has been filed against Strategy, the company formerly known as MicroStrategy, in the U.S. District Court for the Eastern District of Virginia. The lawsuit alleges that the firm misled investors about the financial risks associated with its bitcoin investment strategy.
The legal filing names Executive Chairman Michael Saylor, CEO Phong Le, and CFO Andrew Kang. The plaintiff, Anas Hamza, claims the company did not adequately inform shareholders of the risks linked to bitcoin’s volatility and the impact of recent changes in accounting standards.
Accounting Rule Changes at the Center of the Complaint
The complaint refers to Accounting Standards Update No. 2023-08, which changes how crypto assets must be reported in financial statements. The plaintiff argues that full disclosure of this update could have affected investment decisions. The lawsuit covers shareholders who acquired Strategy stock between April 30, 2024, and April 4, 2025.
It charges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5. These directives forbid false activities in trading securities. They are requesting compensation, legal fees and various other types of relief in behalf of the injured investors.
Despite Legal Action, Strategy Continues Bitcoin Accumulation
Between May 12 and May 18, 2025, Strategy purchased an additional 7,390 bitcoins for approximately $764.9 million. This raises the company’s total holdings to 576,230 BTC. The firm has now invested around $40.18 billion at an average cost of $69,726 per coin.
Strategy disclosed the lawsuit in an SEC filing dated May 19. The company stated its intention to contest the claims but said it could not currently estimate potential losses or predict the outcome of the case.
