Strategy’s massive $40 billion Bitcoin investment faces fresh scrutiny as a class action lawsuit emerges, even as the cryptocurrency giant continues its aggressive accumulation strategy. The legal challenge comes at a crucial moment when Bitcoin maintains strong support above $105,000, highlighting the complex dynamics at play in the institutional crypto market.
Class Action Lawsuit Details
According to Strategy’s SEC filing, investors filed the lawsuit on May 16, targeting the company, CEO Phong Le, co-founder Michael Saylor, and Executive VP Andrew Kang. The plaintiffs allege violations of the Securities Exchange Act between April 2024 and April 2025, specifically regarding disclosures about the company’s Bitcoin treasury operations.
Key allegations include:
- Misleading statements about Bitcoin investment strategy profitability
- Failure to adequately disclose BTC volatility risks
- Insufficient transparency about potential losses
Strategy’s Defiant Response
Rather than seeking settlement, Strategy’s leadership has announced plans to vigorously defend against these claims. This stance comes as institutional Bitcoin treasury adoption continues to surge across the market.
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Latest Bitcoin Acquisition
Despite the legal challenges, Strategy announced a new purchase of 7,390 BTC for $764.9 million, averaging $103,498 per BTC. The company’s total holdings now stand at:
- 576,230 BTC total holdings
- $40.8 billion total investment
- $69,726 average purchase price
- 16.3% YTD yield achievement
Market Impact and Technical Analysis
The lawsuit news has had minimal impact on both BTC and MSTR stock prices. Bitcoin continues to show resilience, trading above $105,500 with a 3% 24-hour gain. Technical analysts remain bullish, with predictions pointing to potential new all-time highs around $112,000.
FAQ Section
How much Bitcoin does Strategy currently hold?
Strategy currently holds 576,230 BTC, making it the largest corporate Bitcoin holder globally.
What is the average purchase price of Strategy’s Bitcoin?
The company’s average purchase price stands at $69,726 per BTC, with a total investment of $40.8 billion.
How has the lawsuit affected Bitcoin’s price?
Despite the lawsuit, Bitcoin has shown remarkable resilience, maintaining support above $105,000 and recording a 3% gain in the 24 hours following the news.