Bitcoin Bet Turns Bitter: 5 Lawsuits Vs. Strategy For $6 Billion Losses

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure Strategy Inc., the company once known as MicroStrategy, is now at the center of at least five class‑action lawsuits. Investors claim the firm hid big risks tied to its Bitcoin holdings and painted a rosier picture than what was real.

Related Reading: Move Over, Google—Bitcoin Is Now One Of The Top 6 Assets WorldwideThe lawsuits hinge on about $6 billion in unrealized losses and cover an 11‑month stretch from April 2024 through April 2025.

Legal Moves And Allegations

According to filings, the complaints say executives made untrue and misleading statements about Bitcoin’s ups and downs and an accounting change that forces the company to mark its crypto to market.

One lead plaintiff, Abhey Parmar, insists that top officers breached their duties and oversold the company’s outlook. Based on reports, law firms are already bidding to lead these actions—the kind of scramble you see when big money is at stake.

Insider Trades Under Scrutiny

Investors point to trades by new CEO Phong Le and CFO Andrew Kang as proof of inside dealing. They sold about $32 million in stock just before the public disclosure of the accounting shift.

Lawyers say that timing raises questions about whether executives knew how badly the mark‑to‑market losses would hit the books. If they held back material facts until after their trades, that could stiffen the case.

Bitcoin is currently trading at $107,729. Chart: TradingView### Profit Warning Fuels The Fire

In April, Strategy warned shareholders it wouldn’t break even in Q1 because of those same unrealized Bitcoin losses. The firm reported a loss of $16.49 per share and cautioned it might not turn a profit soon.

That announcement triggered the first suit—filed on May 16 by Pomerantz LLP—and prompted follow‑ons from Gross Law Firm; Bronstein Gewirtz & Grossman; Kessler Topaz Meltzer & Check; and Levi & Korsinsky.

Numbers Behind The Win

Despite the courtroom drama, the stock is up nearly 30% so far this year. Strategy now holds 592,345 BTC, with a total market value north of $63  billion.

The firm bought its Bitcoin at an average of $70,702 per coin, and today they trade around $106,824—an unrealized gain of about $21.3  billion, or roughly 50%. Those figures help explain why investors have stuck with the plan.

Related Reading: 800K Bitcoin A Month: Long-Term Holders Fuel Unprecedented Holding Spree### Institutional Support Remains Strong

Based on the latest SEC filings, founder Michael Saylor is the biggest holder, with close to 20  million shares—worth almost $8  billion at $389.50 per share.

Other big names include Vanguard at 8.55%, BlackRock at 5.80%, Capital International Investors at 5.80%, Susquehanna Securities at 4.82%, and Jane Street Group at 4.70%.

Strategy’s stock trades near $393.24, valuing the company at about $107.50 billion—a 1.67x premium over its net asset value.

Featured image from Unsplash, chart from TradingView

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