MicroStrategy, the US-based company with the world’s most Bitcoin (BTC), faces a class action lawsuit over the BTC strategy.
The strategy faces a class action lawsuit alleging violations of the U.S. federal securities law, Bullock reported.
The litigation shock over the Bitcoin Bull strategy!
New York-based law firm Pomerantz LLP filed a class action lawsuit against MicroStrategy in Eastern District Court of Virginia.
This incident in question is aimed at investors between April 2024 and April 2025.
Pomerantz claims the strategy misunderstood investors about the Bitcoin strategy and downplayed the risk.
Pomerantz alleges that Straetgy violated federal securities laws by publishing false and misleading statements about the profitability of its Bitcoin investment strategy.
Pomerantz also argues that the strategy did not properly disclose the full nature or scope of the impact of the new accounting standards (ASU 2023-08) on financial statements, downplaying the risks to investors.
At this point, the lawsuit states that the adoption of ASU 2023-08 in the first quarter of 2025 saw its share price fall by more than 8% as the strategy has an unrealized loss from digital assets. This also caused losses to MSTR investors.
Pomerantz said in the class action lawsuit that he represents investors who invested in MicroStrategy from April last year to April this year, adding that “other investors may also be able to participate in the class action lawsuit until July 15th.”
The strategy adopted the Bitcoin accumulation strategy in 2020 and currently holds the most BTC holdings of any public company with 597,325 BTC.
*This is not investment advice.