Strategy Buys 7,390 BTC Worth $764.9M Amid Lawsuit

Michael Saylor’s Bitcoin development company, Strategy, has announced a significant purchase of 7,390 BTC, valued at $764.9 million, from May 12 to May 18. This acquisition was disclosed in an 8-K filing with the Securities and Exchange Commission on May 19. The purchase brings Strategy’s total Bitcoin holdings to 576,230 BTC, valued at over $59 billion at current market prices. This amount represents 2.74% of Bitcoin’s total 21 million supply, with an average purchase price of $69,726 for the entire stash.

This latest acquisition by Strategy comes at a time when the company is facing a class action lawsuit filed in the US District Court for the Eastern District of Virginia. The lawsuit names Strategy’s Executive Chairman, Michael Saylor, President and CEO, Phong Le, and executive vice president and chief financial officer, Andrew Kang, as defendants. The suit 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 Strategy’s Bitcoin-focused investment strategy and treasury operations, and failed to disclose the various risks associated with Bitcoin’s volatility.

Strategy has responded to the lawsuit by stating that it will “vigorously” defend itself against the allegations. The company’s latest purchase of Bitcoin, despite the legal challenges, underscores its commitment to its Bitcoin-focused strategy. The acquisition is part of a broader trend in the crypto industry, where companies are increasingly investing in Bitcoin as a store of value and a hedge against inflation. The purchase by Strategy, along with similar moves by other companies, has likely contributed to the recent surge in Bitcoin’s price, which reached nearly $107,000 on Sunday.

Strategy’s latest purchase of Bitcoin is a strategic move that aligns with its long-term vision of leveraging Bitcoin as a key asset. The company’s decision to continue investing in Bitcoin, despite the legal challenges, demonstrates its confidence in the digital asset’s potential. The lawsuit, while a significant development, does not appear to have deterred Strategy from pursuing its Bitcoin-focused strategy. The company’s response to the lawsuit, indicating a vigorous defense, suggests that it is prepared to address the allegations and continue its operations as planned.

The class action lawsuit against Strategy highlights the risks and challenges associated with investing in Bitcoin. The plaintiffs’ allegations of false and misleading statements, as well as the failure to disclose risks, underscore the importance of transparency and disclosure in the crypto industry. Strategy’s response to the lawsuit, indicating a vigorous defense, suggests that the company is confident in its investment strategy and is prepared to address the allegations. The lawsuit, while a significant development, does not appear to have deterred Strategy from pursuing its Bitcoin-focused strategy. The company’s latest purchase of Bitcoin, despite the legal challenges, demonstrates its commitment to its long-term vision of leveraging Bitcoin as a key asset.