MicroStrategy (now Strategy), the US-based company that holds the most Bitcoin (BTC) in the world, is facing a class action lawsuit over its BTC strategy.
Strategy is facing a class action lawsuit alleging violations of U.S. federal securities laws, The Block reported.
Lawsuit Shock to Bitcoin Bull Strategy!
New York-based law firm Pomerantz LLP filed a class action lawsuit against MicroStrategy in the Eastern District Court of Virginia.
The case in question covers investors from April 2024 to April 2025.
Pomerantz alleges Strategy misled investors about its Bitcoin strategy and downplayed the risks.
Pomerantz argues that Straetgy violated federal securities laws by making false and misleading statements about the profitability of its Bitcoin investment strategy.
Pomerantz also alleges that Strategy did not properly disclose the full nature or extent of the impact of the new accounting standards (ASU 2023-08) on its financial statements and downplayed the risks to investors.
At this point, the lawsuit states that Strategy had $5.9 billion in unrealized losses from digital assets due to the adoption of ASU 2023-08 in the first quarter of 2025, which caused the stock price to fall by more than 8%. This also caused losses to MSTR investors.
Pomerantz said in the class action that he represents investors who invested in MicroStrategy from April of last year to this April, and added, “Other investors may also join the class action until July 15.”
Strategy adopted a Bitcoin accumulation strategy in 2020 and currently holds the most BTC holdings among publicly traded companies with 597,325 BTC.
*This is not investment advice.
