MicroStrategy Ranks Ninth in Trading Volume with $51.90 Billion as Bitcoin Lawsuit Looms

On May 19, 2025, MicroStrategy (MSTR) saw a trading volume of $51.90 billion, ranking it ninth in the day's stock market activity. The stock rose by 3.41%, marking its second consecutive day of gains, with a total increase of 4.13% over the past two days.

MicroStrategy is currently facing a class action lawsuit filed by Pomerantz LLP, alleging that the company and its executives misled investors regarding its Bitcoin investments and related financial disclosures. The lawsuit, filed in the U.S. District Court for the Eastern District of Virginia, includes investors who acquired MicroStrategy stock between April 30, 2024, and April 4, 2025. The plaintiffs claim that MicroStrategy violated federal securities laws by changing its accounting practices without adequately disclosing the implications.

According to the complaint, MicroStrategy has held Bitcoin since 2020 as part of its long-term strategy, financing its purchases using cash reserves and proceeds from equity and debt financing. The company introduced new key performance indicators (KPIs) to evaluate the performance of its Bitcoin holdings, including BTC Gain, BTC Yield, and BTC $ Gain. However, the plaintiffs argue that MicroStrategy failed to adequately warn investors about the risks associated with the new accounting model and overstated its profitability under the fair-value approach.

On January 1, 2025, MicroStrategy adopted the FASB’s Accounting Standards Update (ASU 2023-08), which requires companies to record their cryptocurrency holdings at fair value in financial statements. Previously, MicroStrategy used a cost-less-impairment accounting model, under which Bitcoin impairments were recorded only when the asset’s price fell. The plaintiffs allege that MicroStrategy understated the potential losses it might record on its Bitcoin holdings under fair-value accounting, leading to significant losses for investors after the company announced an unrealized loss of $5.91 billion in Q1 2025.

Despite the lawsuit, MicroStrategy announced the acquisition of 7,390 BTC worth $764.9 million. The company now holds 576,230 BTC acquired for $40.18 billion, with each Bitcoin costing $69,726. With Bitcoin currently trading at $103,745, MicroStrategy’s Bitcoin stash is valued at $59.78 billion. The company has achieved a BTC Yield of 16.3% year-to-date in 2025.