Bitcoin Bull Michael Saylor's Company Strategy Hit with Class Action Shock Again! "The Allegations are Huge!"

The US-based company MicroStrategy, now known as Strategy, which holds the most Bitcoin (BTC) globally, is facing a class action lawsuit due to its BTC strategy.

According to The Block's report, Strategy is facing a class action lawsuit for allegedly violating U.S. federal securities laws.

Lawsuit Shock for Bitcoin Bull Strategy!

The New York-based law firm Pomerantz LLP filed a class action lawsuit against MicroStrategy in the Eastern District Court of Virginia.

The case in question covers investors from April 2024 to April 2025.

Pomerantz claims that Strategy misled investors regarding the Bitcoin strategy and downplayed the risks.

Pomerantz argues that Bitcoin's investment strategy of Strategy violated federal securities laws by using false and misleading statements about its profitability.

Pomerantz also claims that Strategy does not accurately explain the full nature or scope of the impact of the new accounting standards on the financial statements (ASU 2023-08) and downplays the risks to investors.

At this point in the case, it is stated that Strategy has an unrealized loss of 5.9 billion dollars from digital assets due to the adoption of ASU 2023-08 in the first quarter of 2025, and that this loss caused the stock price to drop by more than 8%. This also led to losses for MSTR investors.

Pomerantz reported that it represents investors who invested in MicroStrategy from last April to this April and stated, "Other investors can also join the class action by July 15."

Strategy, in 2020 adopted a Bitcoin accumulation strategy and is currently the corporate company holding the most BTC among publicly traded companies with 597,325 BTC.