Strategy purchased nearly $765 million worth of Bitcoin last week, coinciding with the disclosure of a class-action lawsuit filed against it.
In an official statement released on May 19th, Strategy confirmed it had acquired 7,390 BTC at a total cost of approximately $764.9 million, averaging just under $103,500 per BTC. The announcement also revealed that Strategy’s year-to-date yield from Bitcoin stood at 16.3%, bolstered by a rally in BTC’s market value.
Michael Saylor Commenting On Strategy’s Portfolio
Source: X (@saylor)
Michael Saylor, Strategy’s Executive Chairman and prominent Bitcoin advocate, hinted at the acquisition on May 18th, continuing his tradition of cryptic social media announcements tied to corporate moves.
In a filing with the U.S. Securities and Exchange Commission (SEC), Strategy disclosed a newly filed class-action lawsuit in the U.S. District Court for the Eastern District of Virginia. The suit names Michael Saylor, President and CEO Phong Le, and Executive VP and CFO Andrew Kang as defendants.
The lawsuit alleges violations of Section 10(b) and Section 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5, which pertain to securities fraud and misrepresentation.
The core accusation is that Strategy and its leadership “made false and/or misleading statements” or “failed to disclose material information” related to the profitability of its Bitcoin-centric investment strategy and the inherent risks associated with Bitcoin’s volatility.
The crypto community has expressed skepticism about the lawsuit. A pseudonymous developer known as 0xngmi, affiliated with DefiLlama, posted on X that the legal challenge lacks substance.
According to 0xngmi, the suit appears to stem from investors who are upset about potential losses but ignores Strategy’s clear and public Bitcoin-focused identity. He stated:
“You’re buying a company that is self-labelled as ‘leverage on Bitcoin’, so what do you expect?”
This view echoes broader sentiment in the crypto space, where Strategy’s Bitcoin maximalist position has been well known for years.
Strategy’s approach to Bitcoin has sparked a corporate trend that’s gaining momentum globally.
Last week, Top Win, a luxury watchmaker, announced its entry into the crypto space and rebranded itself as AsiaStrategy. The move caused its stock to surge over 60% in premarket trading. AsiaStrategy also announced a strategic partnership with Sora Ventures to implement its Bitcoin treasury plan.
Sora Ventures had previously worked with Metaplanet, the Japanese company that, as of 2024, holds more Bitcoin than El Salvador, the first country to adopt Bitcoin as legal tender.
Elsewhere, a publicly listed Bahraini catering firm with a market cap of $24.2 million adopted a Bitcoin treasury strategy in collaboration with 10X Capital, further underlining the growing international interest in Bitcoin as a treasury reserve asset.
Following this latest purchase, Strategy’s total Bitcoin holdings now stand at 576,230 BTC, acquired at a cumulative cost of around $40.2 billion. The average acquisition price is approximately $69,726 per Bitcoin.
Bitcoin’s Price Chart
Source: CoinMarketCap
With Bitcoin currently trading around $102,615, Strategy’s BTC portfolio is now valued at over $59.2 billion, representing an unrealized gain of $19.2 billion, a 47% increase.
In any case, Strategy’s dual narrative, a massive Bitcoin purchase coupled with a looming legal battle, highlights both the promise and the peril of being a crypto-forward corporation.
While the class-action lawsuit raises questions about regulatory compliance and investor communication, the firm’s Bitcoin-centric approach continues to pay off in terms of portfolio performance.
As the line between traditional finance and digital assets continues to blur, Strategy’s bold strategy may either serve as a blueprint for modern corporate treasury management, or a cautionary tale of over-leverage in a volatile market.
Subscribe to stay informed and receive latest updates on the latest happenings in the crypto world!
Content Strategist
Subscribe to stay informed and receive latest updates on the latest happenings in the crypto world!
