- The firm’s whole Bitcoin holdings now stand at 576,230 BTC.
- Average value foundation up to date to $69,726 per Bitcoin.
- The lawsuit was filed by Pomerantz LLP in Virginia over alleged investor deception.
MicroStrategy, now rebranded as Strategy, is as soon as once more making waves throughout monetary markets.
The firm, identified for holding the most important company stash of Bitcoin, is dealing with a category motion lawsuit alleging deceptive accounting practices.
Despite this, it has continued shopping for extra Bitcoin, bringing its whole to 576,230 BTC, value roughly $59 billion.
$764.9M BTC buy follows lawsuit submitting
On 19 May 2025, Strategy disclosed it had acquired a further 7,390 BTC for $764.9 million.
The common value paid was $103,498 per coin.
The acquisition was financed through an at-the-market (ATM) fairness providing and the issuance of Series A STRK most popular inventory.
This brings its whole holdings to 576,230 BTC at a brand new common value of $69,726.
The announcement got here simply after the agency was hit with a lawsuit filed within the Eastern District of Virginia.
The authorized motion, initiated by Pomerantz LLP, names each the corporate and prime executives, accusing them of failing to alert traders in regards to the dangers posed by up to date Bitcoin accounting guidelines underneath ASU 2023-08.
The new commonplace requires companies to replicate the truthful market worth of Bitcoin on their steadiness sheets.
According to the lawsuit, Strategy downplayed the influence this may have on its monetary statements, allegedly leading to a $5.91 billion fair-value loss that wasn’t adequately communicated to shareholders.
Use of non-GAAP metrics underneath scrutiny
The criticism additionally highlights Strategy’s use of proprietary, non-GAAP metrics such as “BTC Yield” and “BTC $ Gain”.
The plaintiffs argue these phrases weren’t commonplace monetary indicators and should have introduced an inflated view of the corporate’s profitability.
This method appeared to unravel on 7 April, when the $5.9 billion impairment loss turned public.
MSTR shares fell 8.67 p.c that day. By 1 May, earnings studies confirmed the blow to the corporate’s books, and traders responded negatively.
While the agency’s defenders level to long-term Bitcoin appreciation and innovation in digital asset technique, the lawsuit raises questions on regulatory compliance and transparency.
Accounting consultants have famous that non-GAAP metrics have to be used rigorously, particularly after they contradict or obscure established accounting rules.
No strategic shift regardless of authorized dangers
Despite the monetary hit and authorized threats, Strategy has proven no signal of adjusting course.
Its May submitting suggests the agency stays dedicated to accumulating extra Bitcoin, with its newest buy representing one of many largest single-month acquisitions this yr.
Michael Saylor, the corporate’s chairman, has persistently positioned Bitcoin as “digital gold” and a long-term asset class.
His earlier remark — “My formula for success is rise early, work late, and buy Bitcoin” — continues to outline the corporate’s public stance.
However, the authorized case may reshape how different companies method digital asset reporting.
