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Strategy Bags 7,390 More Bitcoins in Face of Class Action Lawsuit

Published
James Morales
Published
By James Morales
Edited by Insha Zia
Key Takeaways
  • Strategy announced the purchase of 7,390 BTC on May 19.
  • So far in 2025, Strategy has spent over $12.3 billion acquiring 129,830 BTC.
  • Pomerantz LLP has filed a class action lawsuit alleging that Strategy misled investors.

In a Securities and Exchange Commission (SEC) filing, dated May 19, Strategy (formerly MicroStrategy) announced the purchase of an additional 7,390 BTC for $764.9 million.

The acquisition, Strategy’s third so far in May, follows the submission of a class action lawsuit that alleges the firm misled investors about the financial risks associated with its Bitcoin purchases.

Strategy 2025 Bitcoin Purchases Top $12 Billion

Including its latest acquisition, Strategy has spent more than $12.3 billion in 2025 to purchase 129,830 BTC across 15 transactions.

The SEC filing acknowledges the class action lawsuit and states that the company intends to “vigorously defend against these claims.”

Changes to Accounting Standards

Filed in the United States District Court for the Eastern District of Virginia by the law firm Pomerantz LLP on behalf of a purported class of investors, the latest class action suit accuses Strategy of making “false and misleading statements” about its business, operations and prospects.

The lawsuit takes issue with how Strategy reported its Bitcoin profits. Specifically, it claims the company failed to warn investors about the effect of a new accounting standard, ASU 2023-08, which was introduced in January 2025.

After adopting the new accounting standard, Strategy reported a $5.91 billion unrealized loss on its digital assets for the first quarter of 2025.

Stock Drop Blame Game

According to the plaintiff, when Strategy announced that its digital assets were worth less than previously reported, it led to an 8.67% drop in the company’s stock price on April 7.

Alongside MicroStrategy Incorporated, the class action lawsuit also names Chairman Michael J. Saylor, CEO Phong Le and CFO Andrew Kang as defendants.

“While Defendants advised investors throughout the Class Period that they expected Strategy’s adoption of ASU 2023-08 to materially impact its financial statements, Defendants failed to disclose the particular nature or scope of the expected impact while downplaying the attendant risks,” the lawsuit states.

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James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation. With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
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