Michael Saylor's Strategy Hit With Lawsuit Following $5.9B Bitcoin Loss
A California investor, Anas Hamza, has filed a lawsuit against Strategy (formerly MicroStrategy) and its executives, including Michael Saylor, in the U.S. District Court for the Eastern District of Virginia. The complaint alleges violations of federal securities laws due to false and misleading statements regarding the company's Bitcoin investment strategy. Hamza claims that Strategy overstated anticipated profitability and failed to disclose potential losses related to its digital assets under fair-value accounting standards. The lawsuit does not specify damages and also names CEO Phong Le and CFO Andrew Kang as defendants. Strategy plans to vigorously defend itself and cannot predict legal costs. The company holds approximately 576,000 Bitcoin valued at $60.6 billion and reported a first-quarter loss of $4.22 billion, partly due to a significant drop in Bitcoin value. Strategy's shift to fair-value accounting has been criticized for downplaying risks associated with its Bitcoin holdings.
