MicroStrategy Inc., led by Michael Saylor, and its executives are facing a class action lawsuit, as disclosed in a recent SEC filing. The lawsuit alleges that the company made misleading statements regarding its Bitcoin strategy, specifically concerning the risks and profitability associated with its investments in the cryptocurrency.
The legal action claims that MicroStrategy’s executives hid significant risks, which led to a reported $5.9 billion unrealized loss in the first quarter of 2025, following the implementation of new accounting rules. This has resulted in a pre-market drop of approximately 2% in MicroStrategy’s stock price. Meanwhile, the company has continued its investment in Bitcoin, purchasing an additional $765 million worth over the weekend.
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Source: https://thedefiant.io/news/regulation/microstrategy-michael-saylor-sued-over-misleading-bitcoin-strategy-5-9b-loss-btc-2641f284