Strategy, the company formerly known as MicroStrategy and the leading corporate holder of Bitcoin, made headlines again after acquiring another large batch of the digital asset—just as a class-action lawsuit emerged against the firm.
On May 19, Strategy revealed it had purchased 7,390 BTC for approximately $764.9 million, paying an average of just under $103,500 per coin. So far this year, the company has seen a return of 16.3% on its Bitcoin holdings. Executive Chairman Michael Saylor hinted at the acquisition via an X post on May 18.
However, the announcement coincided with news of a class-action lawsuit filed in the U.S. District Court for the Eastern District of Virginia. The legal complaint, disclosed in a filing with the SEC, accuses Strategy’s leadership of misrepresenting the risks and nature of their Bitcoin-centric approach.
As of May 18, Strategy owns a total of 576,230 BTC, acquired at a combined cost of roughly $40.2 billion—averaging $69,726 per Bitcoin. At current market prices, the value of these holdings stands above $59.2 billion, reflecting an unrealized profit of $19.2 billion, or 47%, based on CoinMarketCap data showing Bitcoin trading near $102,615.
Executives Named in Class-Action Filing
The lawsuit names several high-ranking executives as defendants, including Chairman Michael Saylor, CEO Phong Le, and CFO Andrew Kang. The claims center around alleged violations of the Securities Exchange Act of 1934, specifically Sections 10(b) and 20(a), as well as Rule 10b-5.
According to the complaint, Strategy is accused of making “false or misleading” statements and failing to adequately disclose the risks associated with its Bitcoin-heavy treasury strategy—especially the impact of Bitcoin’s volatility on profitability.
Commenting on the situation, pseudonymous DefiLlama developer 0xngmi said in a May 19 post on X that the lawsuit appears unfounded. “It seems like the case boils down to people being upset that [Strategy] didn’t stress how much it could lose if BTC dropped,” he noted. “But this is a company openly calling itself a leveraged play on Bitcoin—what were they expecting?”
Bitcoin Treasury Trend Gains Momentum
Strategy’s bold Bitcoin-first approach has inspired a wave of imitators across the corporate world. Last week, luxury watchmaker Top Win saw its stock price jump over 60% in premarket trading after it announced plans to begin accumulating Bitcoin and rebranded as AsiaStrategy.
AsiaStrategy is working with Sora Ventures to implement its new strategy—Sora previously teamed up with Metaplanet in 2024 to help establish Japan’s first Bitcoin treasury for a public company. Metaplanet now holds more Bitcoin than the nation of El Salvador.
Additionally, a publicly traded catering company based in Bahrain, with a $24.2 million market cap, joined the trend last week by adopting a Bitcoin treasury strategy in partnership with 10X Capital.
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