Strategy, Top Corporate Bitcoin Holder, Buys $765M BTC Amid Class-Action Lawsuit

Strategy Company Acquires More Bitcoin Despite Facing Lawsuit

The leading corporate Bitcoin holder, Strategy previously known as MicroStrategy, recently announced its acquisition of nearly $765 million worth of Bitcoin. The acquisition comes amid an ongoing class-action lawsuit against the company. In an announcement made on May 19, Strategy revealed its purchase of 7,390 BTC, which amounted to approximately $764.9 million. The purchase price averaged out to just under $103,500 per coin. Despite the ongoing legal issues the company is facing, Strategy reported a Bitcoin yield of 16.3% year-to-date, further establishing its commitment to the cryptocurrency.

Hints at Purchase by Strategy Executive Chairman

Michael Saylor, the executive chairman of Strategy, gives his usual hint of the impending purchase in his May 18 post. Strategy’s chairman is well-known for his bullish stance on cryptocurrencies and Bitcoin in particular, with this latest purchase further demonstrating his confidence in the cryptocurrency market.

Strategy Faces Class-Action Lawsuit

Besides its Bitcoin acquisition, Strategy also disclosed an ongoing class-action lawsuit against the company in its recent filing with US Securities and Exchange Commission (SEC). The lawsuit activists accuse Strategy officials of misrepresenting the nature of the company’s Bitcoin investments. As of May 18, Strategy’s BTC holdings consisted of 576,230 coins, acquired for a total approximate value of $40.2 billion. With the average acquisition price reaching around $69,726 per coin, the total value of the company’s holdings now stands at more than $59.2 billion. This represents an unrealized gain of around $19.2 billion, or a 47% yield on the initial investment.

Strategy Officials Face Allegations

The company’s executives, including Strategy chairman Michael Saylor, president and CEO Phong Le, and executive vice president and CFO Andrew Kang, are all accused in the suit. The charges refer to violations of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, along with Section 20(a) of the Exchange Act.

Reaction to the Lawsuit

The lawsuit has triggered reactions within the industry. For instance, developer at decentralized finance data platform DefiLlama, 0xngmi, argued that the lawsuit had no substantial basis. In his opinion, it simply seemed like people were complaining that Strategy had understated the potential losses of its investments if Bitcoin prices were to decline.

Inspiring Bitcoin Investment Strategies

Despite the lawsuit, Strategy’s unique Bitcoin investment strategy has inspired other companies. Recently, luxury watchmaker Top Win, now known as AsiaStrategy, reported more than a 60% surge in its shares during premarket trading. Top Win announced its new Bitcoin acquisition strategy and company name change during this time. AsiaStrategy revealed a partnership with Sora Ventures in executing these new plans. Sora Ventures made headlines in 2024 by partnering with Metaplanet to facilitate Japan’s first corporate Bitcoin treasury. Today, Metaplanet holds more Bitcoin than the country of El Salvador. At the same time, a Bahrain-based catering company incorporated a Bitcoin treasury strategy, in collaboration with investment firm 10X Capital, expanding the influence and adoption of Bitcoin investment strategies.