Strategy Acquires 7,390 BTC for $764.9M Amid Lawsuit

Strategy, the top corporate Bitcoin holder, recently acquired 7,390 BTC for approximately $764.9 million, with an average price of just under $103,500 per coin. This purchase was announced on May 19 and comes at a time when the company is facing a class-action lawsuit. The company reported a Bitcoin yield of 16.3% year-to-date, reflecting a significant return on its investment.

As of May 18, Strategy holds a total of 576,230 BTC, acquired for around $40.18 billion at an average price of $69,726 per coin. At current prices, the company’s total holdings are valued at more than $59.2 billion, representing an unrealized gain of $19.2 billion, or 47%. This substantial gain underscores the company's strategic investment in Bitcoin and its confidence in the cryptocurrency's long-term value.

Strategy's recent acquisition of Bitcoin has not been without controversy. According to a May 19 filing with the US Securities and Exchange Commission, a class-action lawsuit was filed in the US District Court for the Eastern District of Virginia against the company’s executives, including executive chairman Michael Saylor, its president and CEO Phong Le, and executive vice president and chief financial officer Andrew Kang. The lawsuit alleges violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, as well as Section 20(a) of the Exchange Act. The plaintiffs claim that the defendants made false and/or misleading statements regarding the anticipated profitability of the company's Bitcoin-focused investment strategy and treasury operations, and failed to disclose the various risks associated with Bitcoin’s volatility.

Despite the legal challenges, Strategy's Bitcoin treasury strategy continues to inspire other companies to adopt similar approaches. Last week, luxury watchmaker Top Win announced it would change its name to AsiaStrategy and adopt a Bitcoin accumulation strategy, leading to a surge in its share price. AsiaStrategy is partnering with Sora Ventures to implement its plan, the same firm that partnered with Metaplanet in 2024 to create Japan’s first corporate Bitcoin treasury. Additionally, a Bahrain-based listed catering company with a $24.2 million market cap adopted a Bitcoin treasury strategy in partnership with investment firm 10X Capital. These developments highlight the growing trend of companies integrating Bitcoin into their treasury strategies, following Strategy's lead.