Class Action Trouble Hits Strategy’s Bitcoin Fortress
Strategy (formerly MicroStrategy) — the Bitcoin-hoarding software giant — is now facing a class action lawsuit that accuses the company and its top execs, including Michael Saylor, of misleading investors about the risks and profitability of its aggressive crypto strategy.
Filed in the U.S. District Court for the Eastern District of Virginia, the lawsuit was brought by plaintiff Anas Hamza and targets:
- Strategy (MSTR)
- Executive Chairman Michael Saylor
- CEO Phong Le
- CFO Andrew Kang
According to the filing with the Securities and Exchange Commission (SEC) on May 19, the complaint alleges violations of the Securities Exchange Act of 1934, namely Sections 10(b) and 20(a) and Rule 10b-5.
The suit claims Strategy “made false and/or misleading statements” and failed to disclose risks related to Bitcoin’s volatility, as well as the impact of new crypto accounting standards.
Investors Say Strategy Downplayed Risks
The case centers around events between April 30, 2024, and April 4, 2025, a crucial window where Strategy doubled down on Bitcoin, pumped out bullish statements, and watched its share price climb with BTC — only for volatility and regulatory shifts to rear their heads.
The plaintiff says Strategy underplayed losses stemming from Accounting Standards Update No. 2023-08, which changes how crypto assets are reported in company books — a big deal for a firm whose treasury is almost entirely Bitcoin.
The complaint seeks:
- Unspecified damages
- Legal fees
- Interest and additional relief
Strategy says it intends to fight the allegations but admits it can’t yet predict the outcome or cost of the legal battle.
Strategy Keeps Stacking Sats
Even with legal heat rising, Strategy isn’t slowing down. In the same SEC filing, the firm disclosed it bought another 7,390 BTC between May 12–18, spending nearly $765 million at an average of $103,498 per coin. That brings Strategy’s total to 576,230 BTC, purchased for $40.18 billion at an average price of $69,726 per Bitcoin. To put that into perspective: Strategy now owns over 2.7% of all Bitcoin that will ever exist.
Saylor is clearly not flinching — lawsuit or not.
What It Means for Investors
This legal drama could rattle confidence in publicly traded firms that are tying their fortunes to crypto assets. While Saylor's Bitcoin evangelism helped redefine corporate treasury strategies, the class action lawsuit raises serious questions about disclosure, volatility, and risk management in an evolving regulatory environment. It also reopens the discussion about how companies — especially public ones — should account for wild assets like Bitcoin and what fiduciary duty they owe shareholders when riding the crypto wave.
