On May 16, an intriguing class action lawsuit was launched against Strategy, previously known as MicroStrategy, and its prominent executives, including President and CEO Phong Le and Chief Financial Officer Andrew Kang.
The suit, led by plaintiff Anas Hamza, contends that the firm misrepresented vital elements of its Bitcoin investment methodology, potentially breaching federal securities regulations.
Legal Action by Anas Hamza
The filing accuses Strategy of providing misleading disclosures about its Bitcoin investments and corporate strategies. Hamza is representing fellow shareholders who might have incurred losses attributable to the company’s alleged deceptive communications.
The claims specifically reference potential breaches of the Securities Exchange Act, which mandates the accurate conveyance of information to investors while seeking restitution for the alleged breaches.
Analysts skeptical of the firm’s strategy, notably Bank of America’s Craig Coben, express concerns that the company’s aggressive Bitcoin buying strategy could introduce considerable volatility for shareholders.
Coben has pointed out that this relentless accumulation could create a “vicious cycle” if Bitcoin’s value plummets. Nevertheless, he emphasized that as long as Strategy manages to maintain a premium over its net asset value, investors stand to benefit.
Moreover, Michael Saylor has assured investors that the firm would remain stable, even if the price of Bitcoin dropped by 90% and remained at that level for several years.
New Bitcoin Purchases Announced by Saylor
Despite ongoing legal disputes, Michael Saylor has opted not to comment publicly on the lawsuit. However, he revealed additional Bitcoin purchases on the social media platform X (formerly Twitter), underscoring the company’s unwavering commitment to its aggressive acquisition strategy.
According to a filing with the US Securities and Exchange Commission (SEC) disclosed by the firm, they acquired an impressive 7,390 Bitcoin at approximately $764.9 million, buying them at an average price of $103,498 each.
This acquisition increases the company’s total Bitcoin holdings to 576,230 BTC, valued around $40.18 billion. Saylor also noted that the firm achieved a Bitcoin yield of 16.3% year-to-date (YTD) for 2025.
Since hitting a low of $232 in April, the firm’s stock, MSTR, has shown significant growth, now trading at $410—a remarkable 76% increase that coincides with Bitcoin’s recovery beyond the important $100,000 benchmark, indicating a resurgence of capital investment following a difficult end to Q1.
As of now, BTC trades at $104,860, reflecting a 23% increase in the monthly timeframe, just 3.6% away from its all-time high of $109,000 reached last January. Year-to-date, Bitcoin has surged by 57%, as per data from CoinGecko statistics.
Featured image from DALL-E, chart from TradingView.com
