MicroStrategy Surges to 14th in Trading Volume Despite Legal Woes and Stock Decline

On June 27, 2025, MicroStrategy (MSTR) experienced a significant trading volume of $56.34 billion, marking a 42.62% increase from the previous day. This surge placed the company at the 14th position in terms of trading volume for the day. However, the stock price of MicroStrategy has been on a downward trend, falling by 0.70% and marking two consecutive days of decline, with a total decrease of 1.27% over the past two days.

MicroStrategy has been facing legal challenges, with several law firms announcing class action lawsuits against the company and certain of its officers. These lawsuits allege that MicroStrategy made materially false and misleading statements regarding its business, operations, and prospects. The lawsuits claim that the company's bitcoin-focused investment strategy and treasury operations were overstated, and the risks associated with bitcoin's volatility were understated.

One of the key issues highlighted in the lawsuits is the adoption of the Financial Accounting Standards Board's Accounting Standards Update No. 2023-08, which requires publicly traded companies to measure their crypto assets at fair value in their financial statements. Prior to this adoption, MicroStrategy accounted for its bitcoin under a cost-less-impairment accounting model, which did not require the company to recognize gains from price increases unless the assets were sold. The lawsuits allege that MicroStrategy failed to disclose the particular nature or scope of the expected impact of this accounting change, leading to misleading assessments of the company's performance.

On April 7, 2025, MicroStrategy disclosed a $5.91 billion unrealized loss on its digital assets for the first quarter of 2025, which was expected to result in a net loss for the quarter. This disclosure led to a significant drop in the company's stock price. The lawsuits claim that MicroStrategy's management continued to provide rosy assessments of the company's performance, reporting and projecting positive results while omitting the immense losses the company could realize on its bitcoin assets.

Investors who purchased or otherwise acquired MicroStrategy securities between April 30, 2024, and April 4, 2025, are encouraged to contact the law firms involved in the class action lawsuits to discuss their legal options. The lawsuits seek to recover damages caused by the alleged violations of federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.