Strategy Faces Class Action Lawsuit Over Bitcoin Investment Strategy — Michael Saylor Named
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Technology company Strategy, formerly MicroStrategy (Nasdaq: MSTR), is facing a class action lawsuit over allegations of misleading disclosures about its Bitcoin investment strategy. The lawsuit targets Executive Chairman Michael Saylor, CEO Phong Le, and CFO Andrew Kang.
According to a filing with the U.S. Securities and Exchange Commission (SEC), the lawsuit was filed by plaintiff Anas Hamza in the U.S. District Court for the Eastern District of Virginia. The lawsuit alleges that Strategy violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 by allegedly making misleading statements and concealing the actual risks associated with the expected returns from its Bitcoin-focused investment strategy.
The class action seeks unspecified damages, interest, attorneys’ fees, and other relief.
The plaintiffs allege that the company failed to be transparent about the extent of its exposure to Bitcoin price volatility and failed to adequately disclose potential losses after the adoption of a new accounting standard (ASU 2023-08), which affects how crypto assets are accounted for in financial statements.
In response, Strategy said it would “vigorously defend these claims” and said it “cannot predict the outcome or estimate the potential damages, if any, in connection with the litigation at this time.”
In the same SEC filing, Strategy also disclosed the continued expansion of its Bitcoin treasury. From May 12 to 18, 2025, the company purchased an additional 7,390 BTC for a total value of approximately $764.9 million, or an average price of $103,498 per Bitcoin. In total, as of May 18, Strategy now holds 576,230 BTC, purchased at a total cost of $40.18 billion, or an average price of approximately $69,726 per coin.
The lawsuit comes as Strategy’s Bitcoin investment strategy continues to attract attention from the financial world, with supporters praising Saylor’s long-term vision, while other analysts express concerns about the strategy’s sustainability and transparency.