Lawsuit targets Michael Saylor’s Strategy as firm’s Bitcoin stash exceeds $65 billion originally appeared on TheStreet.
Strategy (Nasdaq: MSTR), the world’s leading Bitcoin treasury company, is facing a class-action lawsuit filed by a New York-based law firm, Pomerantz LLP, over the alleged loss of $5.9 billion.
Pomerantz LLP said on July 2 that it has filed the lawsuit against Strategy, earlier known as MicroStrategy, in the District Court for the Eastern District of Virginia.
A class action is a type of lawsuit where one or more plaintiffs can file a case on behalf of a group of people who have suffered the same loss or misstatement.
The lawsuit is filed on behalf of all investors who acquired securities between April 30, 2024 and April 4, 2025, which alleges that the company violated federal securities laws and misled its investors by overstating the profitability of its Bitcoin treasury operations.
The class-action suit talks in length about the company adopting the Financial Accounting Standards Board’s accounting standards or ASU 2023-08 since Jan. 1, 2025.
ASU 2023-08 requires public companies to fairly report their crypto assets in financial statements while factoring in both unrealized gains and losses.
Earlier, the company used the cost-less-impairment accounting model. It wrote losses only when Bitcoin’s price depreciated below the acquisition price and didn’t register price hikes unless it sold Bitcoin. So unless there was a sale, the company didn’t register any price depreciation in Bitcoin’s price in its statements.
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The lawsuit claims that Strategy downplayed the risks of the new accounting model on financial statements even as the company advised investors that it expected the adoption of the new model to “materially” impact the statements.
Not only that, the company marketed “rosy” assessments of its performance as a Bitcoin treasury company after adopting the new accounting model, the lawsuit claims.
The lawsuit refers to the unrealized loss of $5.91 billion in Bitcoin that Strategy suffered during the first quarter of 2025, thanks to the adoption of the new accounting model and Bitcoin’s price dip.
The MSTR stock dipped as much as 8% following the news on Apr. 7.
This isn’t the only lawsuit that the company has been hit with. There are at least five similar suits, including by a law firm called Levi & Korsinsky and a plaintiff, against the company.
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However, the company’s co-founder and executive chairman, Michael Saylor, is a firm Bitcoin advocate who believes the cryptocurrency will hit the price of $13 million by 2045.
The company holds 597,325 BTC worth more than $65 billion on its balance sheet, making it the world’s largest public corporate holder of Bitcoin.
The MSTR stock closed at $403.99 on June 3, up 0.43% a day.
As per Kraken, BTC was exchanging hands at $109,466.32 at the time of writing.
TheStreet Roundtable reached out to Strategy for a comment on the development and has not received a response so far. We will update the story if and when the company responds.
Lawsuit targets Michael Saylor’s Strategy as firm’s Bitcoin stash exceeds $65 billion first appeared on TheStreet on Jul 3, 2025
This story was originally reported by TheStreet on Jul 3, 2025, where it first appeared.
