MicroStrategy Sued Over Bitcoin Strategy, Holds 576,230 BTC Valued at $40.18 Billion

MicroStrategy Inc., now known as Strategy, is facing a class action lawsuit filed by plaintiff Anas Hamza on May 16, alleging that the company misrepresented key aspects of its Bitcoin investment strategy to shareholders. The lawsuit names CEO Michael Saylor, President Phong Le, and CFO Andrew Kang as defendants for alleged violations of the Securities Exchange Act.

The legal action follows Strategy's recent announcement of purchasing an additional 7,390 BTC for $764.9 million at an average price of $103,498 per BTC, bringing their total holdings to 576,230 BTC valued at approximately $40.18 billion at current market prices. Critics have raised concerns about the company's aggressive Bitcoin accumulation strategy, citing potential excessive volatility exposure for shareholders.

The lawsuit seeks damages for investors who claim to have been misled by Strategy's disclosures regarding its cryptocurrency holdings.

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