Strategy Michael Saylor filed lawsuit to showcase his next Bitcoin acquisition

4 Min Read
4 Min Read
A reliable editorial Content reviewed by industry experts and veteran editors. Advertising disclosure

According to reports, Michael Saylor, CEO of MicroStrategy (Rebranding to Strategy), dropped the hint that his company is ready to add more Bitcoin to its already large stash. He shared the phrase “There’s nothing to stop this orange.”

It wasn’t a marketing slogan. It was a traffic light. The strategy currently holds over 592,000 BTC, worth around $600 billion, with Bitcoin at just under $101,000. A short tweet from Saylor has caused a fresh purchase run previously. There’s no difference this time.

Michael Saylor teases new Bitcoin purchases

Michael Saylor’s inexplicable posts are more than a rallying cry for crypto fans. This follows a string of similar tips that led the strategy to pick up big chunks of Bitcoin at the main price dip.

Based on history, traders and investors are watching every move he moves. He has built a reputation on social media to turn a single line into a multi-million dollar acquisition. If past patterns apply, we could see the company locking more BTC by the year.

The lawsuit denies the executor misleading investors

Last Friday, shareholders filed a derivatives lawsuit in Virginia federal court. Abhey Parmar claims that Saylor, CEO Phong Le, CFO Andrew Kang and four board members have failed their duties.

According to the complaint, they “issued a substantially false and misleading statement” about the January accounting change. The lawsuit says the team downplayed the impact and risk of shaking Bitcoin’s wild prices before the first quarter report.

See also  BlackRock adds new Bitcoin Custodian Anchorage Digital along with Coinbase
Bitcoin is currently trading at $101,422. Chart: TradingView

New accounting rules cause losses of $6 billion

The strategy adopted rules of the Financial Accounting Standards Committee, which were kicked a month ago. The switch allows companies to evaluate crypto holdings at estimated market prices. It backfired due to April’s strategy.

The company recorded an unrealized loss of $5.9 billion in Bitcoin, and its shares slipped nearly 10% a few days after the results. Investors were caught off guard by how big the hits became.

Source: Google Finance

Insider sales and stock recovery

The lawsuit also highlights nearly $32 million in stock sales by top executives before the losses were made public. Parmar claims these sales came while the stock price was “artificially bulging.”

Still, the Strategic stocks have curbed most of their losses. They flew close to 28% this year, from just under $237 in early April. That rebound shows that many traders are still betting on Saylor’s long-term vision.

Unsplash featured images, TradingView charts

Editing process Bitconists focus on delivering thorough research, accurate and unbiased content. We support strict sourcing standards, and each page receives a hard-working review by a team of top technology experts and veteran editors. This process ensures the integrity, relevance and value of your readers’ content.

Share This Article
Leave a comment