Michael Saylor’s Strategy, the largest corporate holder of Bitcoin, is under fire as New York-based law firm Pomerantz LLP files a major class action lawsuit claiming the company misled investors about its Bitcoin strategy.
Filed in Virginia’s Eastern District Court, the lawsuit accuses Strategy and its CEO, Michael Saylor, of hiding crucial facts between April 30, 2024, and April 4, 2025. According to Pomerantz, the firm highlighted only the impressive side of its Bitcoin holdings — showcasing metrics like BTC Yield and BTC Gain — while allegedly downplaying or omitting significant risks, including extreme price volatility and potential losses tied to new accounting requirements.
A key focus of the case is the firm’s adoption of the new crypto accounting standard, ASU 2023-08, which forces companies to disclose the real-time fair value of digital assets like Bitcoin. Previously, Strategy only reported losses when Bitcoin’s price fell and gains only when coins were sold. The switch exposed an unrealized $5.9 billion loss in early 2025, which immediately shocked the market and triggered an 8% drop in Strategy’s stock price.
Founded as a major player in Bitcoin investment since 2020, Strategy currently holds over 597,000 Bitcoins, worth approximately $65.85 billion — more than any other public company. Despite a remarkable 204% stock surge in the past year and a recent 7.7% jump to $402.28, this legal battle puts the company under intense scrutiny.
With a deadline of July 15 for investors to join the class action, the lawsuit raises tough questions about whether Strategy’s Bitcoin boom was too good to be true. Meanwhile, the crypto community and rival firms like Metaplanet, which have followed similar Bitcoin strategies, are watching the case closely.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
