 
 
A class action lawsuit against Michael Saylor’s Strategy, lodged by investors who alleged the Bitcoin treasury firm made false and misleading statements about its BTC strategy, has been dropped.
Relief For Strategy
According to a legal filing submitted to federal court in Virginia, the lead plaintiffs, represented by Cohen Milstein Sellers & Toll and Pomerantz LLP, voluntarily dropped the case. The withdrawal, first reported by Bloomberg on Friday, is with prejudice, meaning the case is over and cannot be re-filed in the same court, or any court.
The suit, which was initially filed in May against Strategy and its executives, including Michael Saylor, CEO Phong Le, and CFO Andrew Kang, specifically claimed that the defendants overstated the profitability of its Bitcoin investment strategy and treasury operations, while understating volatility risks associated with the apex crypto.
The class action also took issue with Strategy’s adoption of the Financial Accounting Standards Board’s ASU 2023-08 that allows it to record quarter-to-quarter swings in the price of Bitcoin held on its balance sheets.
Previously, the Tysons Corner, Virginia-based company recorded its Bitcoin at original purchase cost; while it could write down pullbacks in the token’s price as “impairment charges,” it could not mark up price gains unless tokens were liquidated.
 
Strategy posted roughly $5.9 billion in unrealized losses on its Bitcoin holdings in Q1 2025, as a dramatic market correction weighed on results. Bitcoin slumped over 11% in the quarter, marking its weakest first-quarter performance since 2015.
According to the complaint, Strategy failed to properly disclose the exact nature or scope of the impact of the new accounting standards on its financial statements, while downplaying risks to investors.
Corporate Crypto Treasury Trend Grows
Strategy started accumulating Bitcoin in August 2020 and currently holds 632,457 BTC worth $68.69 billion as of publication time, as ZyCrypto previously reported.
Since the Michael Saylor-chaired company started buying BTC, crypto treasury companies have sprung up around the world, accumulating a range of digital assets. Popular cryptos now appearing on corporate balance sheets include Ether, Solana, BNB, Tron, and Dogecoin.
Source: https://zycrypto.com/strategy-dodges-troubling-lawsuit-as-investors-drop-class-action-alleging-bitcoin-treasury-misled-them/