After rebranding from MicroStrategy to Strategy, the company now finds itself under fresh legal pressure.
A new class action lawsuit, filed in the Eastern District of Virginia, accuses the Bitcoin-heavy firm and its executives of misleading investors and manipulating crypto stock metrics, all while quietly absorbing billions in losses.
The lawsuit, brought by shareholders who purchased Strategy stock between April 2024 and April 2025, focuses on the staggering $5.91 billion in unrealized Bitcoin losses disclosed earlier this year. That announcement sent the stock tumbling over 8% in a single day, triggering widespread concern about how the company has managed crypto risk and transparency.
Central to the case is the implementation of new accounting rules — specifically ASU 2023-08 — requiring companies to report fair value for digital assets, including both gains and losses. Strategy’s April earnings revealed the magnitude of the impact, showing how much the firm’s Bitcoin-centric approach had cost on paper.
Lawyers argue that Strategy failed to fully inform investors about the risks posed by these changes. The complaint says the company painted an overly optimistic picture using metrics like “BTC Yield” and “BTC Gain,” while minimizing the potential downside under the updated standards. Critics claim this skewed portrayal amounts to securities fraud.
Michael Saylor, the company’s executive chairman and vocal Bitcoin advocate, is at the center of the storm. While Strategy maintains that future profitability is still possible, its warning that more losses could follow has only fueled the case.
The lawsuit reflects growing tension between crypto-first corporate strategies and traditional investor expectations. As volatility and regulation reshape the space, Strategy’s legal and financial troubles may be just the beginning.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/massive-bitcoin-loss-triggers-legal-firestorm-against-strategy/