Strategy Inc., the company once known as MicroStrategy, is now at the center of at least five class‑action lawsuits. Investors claim the firm hid big risks tied to its Bitcoin holdings and painted a rosier picture than what was real.
One lead plaintiff, Abhey Parmar, insists that top officers breached their duties and oversold the company’s outlook. Based on reports, law firms are already bidding to lead these actions—the kind of scramble you see when big money is at stake.
Strategy is facing at least five class action lawsuits alleging securities fraud due to $6 billion in unrealized BTC losses. The lawsuits accuse the firm of misleading investors about Bitcoin risks and profitability. Legal experts say such competing filings are common as firms…
Investors point to trades by new CEO Phong Le and CFO Andrew Kang as proof of inside dealing. They sold about $32 million in stock just before the public disclosure of the accounting shift.
Lawyers say that timing raises questions about whether executives knew how badly the mark‑to‑market losses would hit the books. If they held back material facts until after their trades, that could stiffen the case.
In April, Strategy warned shareholders it wouldn’t break even in Q1 because of those same unrealized Bitcoin losses. The firm reported a loss of $16.49 per share and cautioned it might not turn a profit soon.
That announcement triggered the first suit—filed on May 16 by Pomerantz LLP—and prompted follow‑ons from Gross Law Firm; Bronstein Gewirtz & Grossman; Kessler Topaz Meltzer & Check; and Levi & Korsinsky.
The firm bought its Bitcoin at an average of $70,702 per coin, and today they trade around $106,824—an unrealized gain of about $21.3 billion, or roughly 50%. Those figures help explain why investors have stuck with the plan.
Based on the latest SEC filings, founder Michael Saylor is the biggest holder, with close to 20 million shares—worth almost $8 billion at $389.50 per share.
Other big names include Vanguard at 8.55%, BlackRock at 5.80%, Capital International Investors at 5.80%, Susquehanna Securities at 4.82%, and Jane Street Group at 4.70%.
Strategy’s stock trades near $393.24, valuing the company at about $107.50 billion—a 1.67x premium over its net asset value.
Featured image from Unsplash, chart from TradingView
