Strategy Buys 7,390 Bitcoin, Facing First Class Action Suit from Its Shareholders
Bitcoin-focused company Strategy, run by BTC evangelist Michael Saylor, has once again made headlines. This time for two big reasons – another large Bitcoin acquisition and a class action lawsuit that has hit the company for the first time during the five years of acquiring digital gold, Bitcoin.
Strategy raises its Bitcoin bet by $770 million
On May 19, Michael Saylor, the Strategy’s co-founder, former CEO, and current executive chairman, announced on his X handle yet another large Bitcoin acquisition. This time, the firm bought 7,390 BTC for a mind-boggling $764.9 million at approximately $103,498 per BTC.
Taking this latest purchase into account, the company’s crypto holdings now constitute a whopping 576,230 BTC bought at roughly $69,726 per coin and altogether worth $40.18 billion. According to the latest tweet, Strategy has generated a 16.3% year-to-date Bitcoin yield this year. This impressive figure underscores Strategy’s tenacious, and so far quite successful, pursuit of stacking Bitcoin and making profits on it as the best-performing asset, as Saylor has many times referred to it in the past.
This move confirms Strategy’s reputation as a Bitcoin-focused powerhouse, which it has been since its transformation in August 2020. At that time, Strategy was still called MicroStrategy, and it made a pivot from just producing business software to stacking Bitcoin. The first few purchases were made using cash from the company’s balance sheet.
In December that year, Strategy for the first time raised capital through issuing senior convertible notes and equity sales to fund its further Bitcoin accumulation. Investors received Bitcoin yields and were eligible to convert their senior notes into regular MSTR shares after a certain period. Over the long term, Saylor has turned into an acclaimed BTC evangelist and influencer respected by many in the crypto space, particularly by Bitcoin maximalists. Finally, at the start of 2025, Saylor rebranded MicroStrategy as Strategy, making Bitcoin the core of its business but with enterprise software production remaining as a side job. In October 2023, MicroStrategy began calling itself a “Bitcoin Treasury Company.”
Strategy faces lawsuit from MSTR investors
However, the company’s recent persistent Bitcoin-focused activity has suddenly faced legal consequences. According to media reports, a renowned law firm that protects shareholders’ rights, Pomerantz LLP, has filed a class action lawsuit against Strategy and several of its top executives. This legal complaint comes from investors who bought the company’s shares between April 30, 2024, and April 4, 2025, and it alleges that Strategy has violated the federal securities laws. The case was filed in the United States District Court for the Eastern District of Virginia.
The plaintiffs allege that Strategy has made non-transparent and misleading statements about the details of its Bitcoin investment and holding strategy, its Bitcoin-related operations, and financial prospects. In particular, its Bitcoin strategy, treasury operations, and profitability expected in the future were overstated, while the risks related to Bitcoin volatility and the losses that the company could suffer from it were largely understated.
Overall, the plaintiffs allege that the company made inaccurate public reporting, keeping the stock price inflated. The lawsuit claims that these actions have harmed investors who acquired MSTR during the class period, and that they hope to receive compensation using the court’s ruling.
Strategy has not yet issued any public response to the legal action. However, such proceedings, even if the defendants win the case, can still make a big dent in MSTR investor confidence, the company’s reputation, and its stock price in the short term.
Strategy remains iconic for the Bitcoin community
For many investors, Strategy’s new core Bitcoin-focused business has become a proxy for BTC itself. Even though MSTR is trading at a large premium, many continue to buy this stock or the company’s convertible notes, helping it raise funds for further Bitcoin acquisitions. This is an advantage for investors when the Bitcoin price goes up. However, once it falls, it becomes a serious liability for the company.
A week ago, the company acquired 13,390 BTC for $1.34 billion, with funds also raised through debt.
Currently, Bitcoin is trading in the $105,000 zone as it recovered after a fall from the $106,500 level on Monday. For many Bitcoin maximalists, Strategy remains a strong bullish BTC case with Saylor at the head of this initiative as one of the biggest influencers in the crypto space, who promises to “hodl Bitcoin forever.” Recently, he was even featured in a short documentary shot by the Financial Times.
