Class Action Lawsuit Filed Against Strategy Over Alleged Bitcoin Misleading

Source Bitcoinist

On May 16, a class action lawsuit was filed against Michael Saylor’s Strategy (previously MicroStrategy) and its top executives, including President and CEO Phong Le and Chief Financial Officer Andrew Kang. 

The plaintiff, Anas Hamza, alleges that the Bitcoin (BTC) proxy firm misrepresented crucial aspects of its Bitcoin investment strategy, potentially violating federal securities laws.

Plaintiff Anas Hamza Sues Strategy

The lawsuit claims that Strategy’s disclosures misled investors regarding material facts about its Bitcoin holdings and corporate strategy. Hamza is bringing this suit on behalf of other shareholders who may have suffered losses due to the company’s alleged misleading communications. 

Specifically, the case cites violations of the Securities Exchange Act, which governs the accurate disclosure of information to investors, searching damages for these alleged violations.

Some of the firm’s skeptics, like Bank of America analyst Craig Coben, are worried that the firm’s aggressive approach to Bitcoin accumulation could expose stockholders to a lot of volatility in the market.

The expert has earlier stated that this continued accumulation could turn into a “vicious cycle” if the Bitcoin price collapses. However, Coben highlighted that as long as Strategy can fetch a premium to its net asset value, shareholders will benefit. 

Michael Saylor has also previously promised the firm’s investors that the company would be fine even if the cryptocurrency’s value dropped 90% and stayed that low for another four or five years.  

Saylor Reveals New Bitcoin Purchases

Despite the legal challenges, Michael Saylor has not publicly commented on the lawsuit. However, he disclosed on Monday further Bitcoin purchases on social media platform X (formerly Twitter), indicating that the company remains committed to its aggressive acquisition strategy. 

Through a US Securities and Exchange Commission (SEC) filing, the Bitcoin proxy firm disclosed its acquisition of an additional 7,390 Bitcoin for approximately $764.9 million, purchasing these coins at an average price of $103,498 each. 

This brings the company’s total Bitcoin holdings to 576,230 BTC, valued at around $40.18 billion. Saylor further noted that the firm achieved a Bitcoin yield of 16.3% year-to-date (YTD) for 2025.

Since reaching a yearly low of $232 in April, the firm’s stock, MSTR, has also achieved notable gains. It now trades at $410, reflecting a 76% increase that mirrors Bitcoin’s price recovery above the pivotal $100,000 threshold, indicating a resurgence of capital in the market following a challenging end to the first quarter of the year.

Strategy

Whe writing, BTC trades at $104,860, recording a 23% surge on the monthly time frame, only 3.6% below its all-time high of $109,000 reached last January. Year-to-date, the market’s leading cryptocurrency is up 57%, per CoinGecko data. 

Featured image from DALL-E, chart from TradingView.com

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Cardano Price Forecast: ADA on the verge of correction as momentum weakensCardano (ADA) trades in red on Tuesday at the time of writing, hovering around its key support level at $0.72. A decisive close below this level could trigger a correction. ADA’s falling daily active addresses and Decentralized Exchange (DEX) trading volume further support the bearish outlook.
Author  FXStreet
6 hours ago
Cardano (ADA) trades in red on Tuesday at the time of writing, hovering around its key support level at $0.72. A decisive close below this level could trigger a correction. ADA’s falling daily active addresses and Decentralized Exchange (DEX) trading volume further support the bearish outlook.
placeholder
AUD/JPY Price Forecast: Seems vulnerable while below 93.00 and 23.6% Fibo. levelThe AUD/JPY cross comes under renewed selling pressure following the previous day's modest uptick and drops to a nearly two-week low during the first half of the European session on Tuesday.
Author  FXStreet
7 hours ago
The AUD/JPY cross comes under renewed selling pressure following the previous day's modest uptick and drops to a nearly two-week low during the first half of the European session on Tuesday.
placeholder
Gold price edges lower amid easing haven demand, headwinds from Fed and TrumpGold (XAU/USD) price edges slightly lower on Tuesday, looking for direction after giving back the previous day’s gains, falling back to around $3,226 at the time of writing.
Author  FXStreet
7 hours ago
Gold (XAU/USD) price edges slightly lower on Tuesday, looking for direction after giving back the previous day’s gains, falling back to around $3,226 at the time of writing.
placeholder
Silver Price Forecast: XAG/USD challenges strong resistance at nine-day EMA around $32.50Silver price (XAG/USD) seems to extend its losses for the third successive session, trading around $32.30 per troy ounce during the European hours on Tuesday.
Author  FXStreet
7 hours ago
Silver price (XAG/USD) seems to extend its losses for the third successive session, trading around $32.30 per troy ounce during the European hours on Tuesday.
placeholder
Bitcoin Market Update: Spot Demand Climbs As Short-Term Profits Lose SteamBitcoin (BTC) continues to show signs of strength despite experiencing a minor pullback in its most recent trading session.
Author  NewsBTC
7 hours ago
Bitcoin (BTC) continues to show signs of strength despite experiencing a minor pullback in its most recent trading session.
goTop
quote