Bitcoin News Today: Bitcoin’s Big Bet: Strategy’s Legal Storm and the $59 Billion Question

MicroStrategy, now rebranded as Strategy, has continued to expand its Bitcoin holdings amid ongoing legal challenges, further entrenching itself as one of the largest corporate holders of the cryptocurrency. On May 19, the firm confirmed the purchase of an additional 7,390 Bitcoin at a total cost of approximately $764.9 million, averaging just under $103,500 per BTC. The company’s year-to-date yield from Bitcoin stands at 16.3%, buoyed by recent gains in the cryptocurrency’s market value. With this acquisition, Strategy’s total Bitcoin holdings now amount to 576,230 BTC, valued at over $59.2 billion based on the current price of approximately $102,615 per Bitcoin, yielding an unrealized gain of $19.2 billion compared to its cumulative acquisition cost of about $40.2 billion [1].

The timing of the purchase coincided with the disclosure of a class-action lawsuit filed against Strategy in the U.S. District Court for the Eastern District of Virginia. The lawsuit, which names CEO Michael Saylor, President and CEO Phong Le, and CFO Andrew Kang as defendants, alleges violations of the Securities Exchange Act of 1934, particularly Sections 10(b) and 20(a), and Rule 10b-5, related to alleged securities fraud and misrepresentation. The core accusation is that the company and its leadership “made false and/or misleading statements” or “failed to disclose material information” regarding the profitability of its Bitcoin-centric investment strategy and the risks associated with Bitcoin’s volatility [1].

Despite these legal challenges, the broader cryptocurrency community has expressed skepticism about the lawsuit’s validity. A pseudonymous developer affiliated with DefiLlama, 0xngmi, argued on X that the lawsuit lacks substance, noting that Strategy’s identity as a Bitcoin-focused company was well known. This sentiment reflects a larger trend within the crypto space, where Strategy’s maximalist Bitcoin stance has been evident for years [1]. The withdrawal of the lawsuit in August 2025 further suggests that the claims may not have held up under scrutiny. Experts from Kanalcoin indicated that this withdrawal may prevent long-term financial repercussions, allowing Strategy to continue its Bitcoin optimization strategies [2].

Strategy’s Bitcoin treasury strategy has also influenced corporate behavior in other parts of the world. AsiaStrategy, a luxury watchmaker that rebranded to align with the trend, announced its own Bitcoin treasury plan, partnering with Sora Ventures. Similarly, a publicly listed catering company in Bahrain adopted a Bitcoin treasury strategy in collaboration with 10X Capital. These moves reflect a growing international interest in using Bitcoin as a reserve asset, although the model is not without its challenges [1].

The company’s governance structure has faced its own set of complications. CEO Michael Saylor’s voting control has decreased from 51.7% in 2024 to 45.2% by 2025, partly due to the dilution from a $42 billion capital raise. This has led to the formation of independent governance committees, including a nominating committee, to align with NASDAQ rules. However, Saylor’s continued advocacy for Bitcoin accumulation has created friction with a board increasingly focused on risk mitigation and capital preservation [3]. Additionally, the adoption of FASB ASU 2023-08, which requires mark-to-market valuation of crypto assets, has exposed Strategy to a $5.91 billion unrealized loss in Q1 2025, triggering a stock price collapse and concerns about potential tax liabilities [3].

Source:

[1] Strategy Adds $765M In Bitcoin Amid Legal Scrutiny (https://cryptoweekly.co/news/strategy-adds-765m-in-bitcoin-amid-legal-scrutiny)

[2] Investors Drop Lawsuit Against Strategy Bitcoin Treasury (https://intellectia.ai/news/crypto/investors-withdraw-lawsuit-against-strategy-bitcoin-treasury)

[3] The Cracks in the Bitcoin Treasury Model: Is MicroStrategy Sustainable? (https://www.bitget.com/news/detail/12560604937608)