On May 19, the company Strategy was hit with a class-action lawsuit. The firm’s leadership is accused of making “false or misleading statements” about the profitability of its bitcoin strategy and concealing the asset’s volatility risks.
The allegations involve Chairman Michael Saylor, CEO Phong Le, and CFO Andrew Kang. The plaintiffs cite violations of securities law.
The plaintiffs’ representative, Anas Hamza, stated that the claims are made on behalf of a group of investors for the period from April 30, 2024, to April 4, 2025. Strategy emphasized that it “intends to defend itself vigorously.”
At the time of writing, Strategy holds 576,230 BTC, purchased for $40.2 billion (average price — $69,726). With the current bitcoin price at $102,615, the company’s unrealized profit exceeds $19.2 billion.
The founder of DeFi Llama, known as 0xngmi, criticized the lawsuit, noting that Strategy “has openly positioned itself as a leverage play on bitcoin.”
In his view, the claims of underestimating risks are unfounded:
“What else do you expect when buying shares of such a company?”
A day before the lawsuit was filed, Strategy purchased 7,390 BTC for $764.9 million. The average purchase price was $103,500 per coin.
