Strategy Buys $765M in Bitcoin Then Gets Slapped with Lawsuit

Strategy just scooped up 7,390 more Bitcoin worth $765 million. Then it got hit with a class-action lawsuit.

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The company, formerly known as MicroStrategy, disclosed in a May 19 SEC filing that it bought the BTC at an average price just shy of $103,500. That brings its total Bitcoin holdings to 576,230—now worth over $59.2 billion. The haul has gained Strategy $19.2 billion in unrealized profits, marking a 47% increase from its cost basis of $69,726.

But just as Strategy was flexing those crypto gains, a legal curveball came flying.

Strategy Faces Class-Action Lawsuit over Bitcoin Disclosures

According to the SEC filing, Strategy’s top brass—including Michael Saylor, CEO Phong Le, and CFO Andrew Kang—are now facing a class-action lawsuit filed in the U.S. District Court for the Eastern District of Virginia.

The complaint alleges violations of federal securities law, claiming Strategy misled investors about the risks and anticipated profitability of its Bitcoin-heavy strategy. Specifically, the suit accuses execs of making “false and/or misleading statements” and failing to disclose how Bitcoin’s volatility could impact earnings.

The lawsuit’s timing is notable. Strategy is deep in the green on paper—yet investors say they were misinformed.

Bitcoin Price Surge Keeps Strategy in the Green

Despite the legal noise, Bitcoin is still booming. BTC is up 20% over the past month, now trading above $102,600. That’s helped boost the value of Strategy’s treasury by billions.

Still, the filing makes it clear—Strategy’s returns aren’t just about price moves. The company said its year-to-date BTC yield stands at 16.3%. This shows how its dollar-cost averaging strategy is paying off—at least on paper.

Bitcoin Treasuries Go Global as Strategy Sets the Trend

Strategy’s big Bitcoin play has inspired a wave of copycats.

Last week, Top Win changed its name to AsiaStrategy and saw shares spike over 60% after it announced a crypto treasury strategy. Bahrain-based firm Inovest also jumped in, partnering with 10X Capital to start hoarding Bitcoin for its balance sheet.

Whether lawsuits or gains win out, Strategy is still the poster child for the corporate Bitcoin bet.

Is MicroStrategy a Buy Right Now?

MicroStrategy, now rebranded as Strategy, has drawn strong support from Wall Street analysts. According to TipRanks, the stock holds a Strong Buy rating. 12 out of 13 analysts currently call it a Buy, with just one lone Sell and zero Hold ratings. The average 12-month MSTR price target sits at $524.92—implying a 30.3% upside from the recent close at $402.78.