Michael Saylor’s Strategy Under Fire: Class Action Lawsuit Over Hidden Bitcoin Risks

Strategy (formerly known as MicroStrategy), the company made famous by Michael Saylor as one of the world’s largest corporate Bitcoin holders, is facing serious legal troubles. Investors are suing the firm for allegedly concealing key risks related to Bitcoin accounting.

🔹Class Action Filed in Virginia

U.S. investor Anas Hamza has filed a class action lawsuit in the Eastern District of Virginia, both individually and on behalf of other shareholders, against Strategy, its founder Michael Saylor, President Phong Le, and CFO Andrew Kang. The lawsuit is being handled by the prestigious law firm Pomerantz LLP. 🔹 Allegations of Misleading Investors

According to the court filing, the company allegedly overstated its Bitcoin returns while failing to properly disclose its volatility and the implications of new accounting rules. Particular focus is given to the newly adopted FASB standard (ASU 2023-08), which requires crypto assets to be accounted for at fair market value.

📉 $5.9 Billion Unrealized Loss Allegedly Withheld

At the center of the lawsuit is an alleged failure to disclose an unrealized loss of nearly $5.9 billion in Q1 2025. When the company finally revealed the figure, its stock price fell by 8.67%, significantly impacting investors. 🔹 Investors Claim They Were Misled

The plaintiffs accuse the company’s leadership of consistently promoting positive Bitcoin gains while downplaying or omitting critical risks, including: Bitcoin price volatility,impacts of updated accounting standards,and massive unrealized losses.

📆 Who Can Join the Lawsuit?

The lawsuit applies to anyone who purchased Strategy stock between April 30, 2024, and April 4, 2025. Affected shareholders have until July 15, 2025, to join the class action.

🔍 A Twist in Saylor’s Bitcoin Narrative

Michael Saylor has long been a vocal advocate for Bitcoin, leading the company to acquire over 597,000 BTC worth an estimated $64 billion. Strategy’s stock has skyrocketed over 3,000% in recent years, positioning it as one of the most influential players in the digital asset space. Ironically, it is now some of Saylor’s own followers who are turning against him in court.

💬 Whether this lawsuit will force Strategy to rethink its investor communications and Bitcoin accounting remains to be seen in the weeks ahead.

#MichaelSaylor , #MicroStrategy , #BTC , #Regulation , #CryptoNews

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