Strategy buys 7,390 BTC for $765M, gets hit with class-action lawsuit

MicroStrategy, the leading corporate Bitcoin holder, recently purchased nearly $765 million worth of Bitcoin, acquiring 7,390 BTC at an average price of just under $103,500. This acquisition comes amidst a class-action lawsuit filed against the company.

The lawsuit, filed in the US District Court for the Eastern District of Virginia, alleges that MicroStrategy executives, including Michael Saylor, Phong Le, and Andrew Kang, made misleading statements regarding the profitability of their Bitcoin investment strategy and failed to adequately disclose associated risks. The suit cites violations of the Securities Exchange Act of 1934 and accuses the defendants of misrepresenting the anticipated profitability and inherent volatility of Bitcoin investments.

Despite the lawsuit, MicroStrategy’s Bitcoin holdings currently stand at 57,6230 BTC, acquired at an average price of $69,726 per coin, representing a total cost of approximately $40.18 billion. At current prices, these holdings are valued at over $59.2 billion, yielding an unrealized gain of $19.2 billion (47%). The company reported a year-to-date Bitcoin yield of 16.3%. At the time of writing, Bitcoin traded around $102,615, up 20.3% over the last month.

MicroStrategy’s aggressive Bitcoin treasury strategy has inspired other companies to adopt similar approaches. Luxury watchmaker Top Win (now AsiaStrategy) surged over 60% in premarket trading after announcing its own Bitcoin accumulation plan in partnership with Sora Ventures. This follows Metaplanet’s establishment of Japan’s first corporate Bitcoin treasury in 2024, a venture that has since surpassed El Salvador in Bitcoin holdings. A Bahrain-based catering company also recently embraced a Bitcoin treasury strategy, partnering with 10X Capital. These developments highlight a growing trend of corporations incorporating Bitcoin into their treasury strategies, mirroring MicroStrategy’s pioneering approach.