Key Insights:
- Strategy confirmed a class action lawsuit accusing its executives of misleading statements about its Bitcoin strategy.
- The lawsuit names co-founder Michael Saylor, CEO Phong Le, and Executive Vice President Andrew Kang as defendants.
- The legal complaint claims the company failed to disclose risks linked to Bitcoin’s volatility and potential losses.
Strategy now faces legal pressure as it confirms a class action lawsuit while expanding its Bitcoin portfolio with another major purchase. The complaint targets Strategy and three top executives for allegedly misleading the market between April 2024 and April 2025.
Despite this, Bitcoin and Strategy’s MSTR stock posted gains, underscoring ongoing momentum in crypto-related equities.
Class Action Targets Strategy and Executives
A class action lawsuit filed on May 16 accuses Strategy and its top leaders of violating the Securities Exchange Act. The complaint names Strategy’s co-founder, Michael Saylor, CEO Phong Le, and Executive Vice President Andrew Kang.
Filed by plaintiff Anas Hamza, the case claims the firm misrepresented critical facts about its Bitcoin Treasury strategy.
According to Strategy’s SEC filing, the lawsuit focuses on statements made between April 30, 2024, and April 4, 2025. The plaintiffs allege that the company made false or misleading claims about its Bitcoin holdings and future expectations.
Furthermore, the complaint claims that Strategy did not properly disclose risks related to Bitcoin’s volatility and potential losses.
In response, Strategy stated it plans to defend itself in court and not pursue a settlement. The firm said it had done nothing wrong and was confident in its defence. The lawsuit seeks unspecified damages, fees, legal costs, and other relief.
BTC Holdings Expands as Lawsuit Surfaces
Simultaneously, Strategy disclosed its latest Bitcoin acquisition, purchasing 7,390 BTC for $764.9 million at an average of $103,498 per coin. This latest buy brings Strategy’s total Bitcoin holdings to 576,230 BTC, acquired for $40.8 billion overall. The average price per Bitcoin in Strategy’s treasury now stands at $69,726.
The company, formerly MicroStrategy, revealed this information while reporting a 16.3% year-to-date yield on its BTC portfolio.
The lawsuit met with limited market reactions, as the related asset and stock kept on building upwards. Strategy’s leadership has focused on its long-term commitment to Bitcoin accumulation.
The disclosure came at the very same time as both the lawsuit and Bitcoin purchase. Yet, despite the legal challenge, Strategy has continued expanding its Bitcoin exposure without delay. Despite regulatory and legal scrutiny, the company has not altered its Bitcoin acquisition strategy.
Bitcoin Climbs as Strategy Maintains Course
At the time of writing, Bitcoin traded at around $107,173, up over 1% in the last 24 hours. Terra passed earlier levels, but on May 19, the price dipped to $102,000 before rebounding and closing above $105,000. Analysts now say there is still room for more gains, pointing to a confirmed bullish breakout pattern.
A technical analyst called Titan of Crypto pointed out that a breakout from a bull pennant was underway on the daily chart.
As things stand, however, Bitcoin could be heading toward a new all-time high of around $112,000. This outlook helps explain why interest in Bitcoin and crypto-related equities continues.
MSTR, Strategy’s stock, also saw gains of around 3% and closed above the $400 level on the announcement day.
The positive price action came even though news of the Bitcoin purchase remains caught in legal controversy. Strategy continues to benefit from strong market sentiment tied to Bitcoin’s upward momentum.
