MicroStrategy and its executives have been named in a class-action lawsuit filed in the U.S. District Court for the Eastern District of Virginia. The lawsuit, revealed in a recent SEC filing, accuses the company’s leaders of misleading statements regarding its Bitcoin investment strategy and associated risks. However, the strategy portfolio tracker has hinted at a continued accumulation as the lawsuit comes into view.
Details of the Allegations and Response from the Crypto Community
The complaint targets MicroStrategy chairman Michael Saylor, president and CEO Phong Le, and executive vice president and CFO Andrew Kang. It alleges violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, alongside Section 20(a) of the same act.
According to the filing, the defendants made false or misleading statements about the expected profitability of MicroStrategy’s Bitcoin-focused investment strategy. The suit also claims they failed to disclose the risks linked to Bitcoin’s price volatility.
A developer known as 0xngmi from the DeFi data platform DefiLlama shared a position X. He replied to Walter Bloomberg’s post, where he described the lawsuit as lacking foundation. He stated that the case mainly complains about MicroStrategy allegedly understating potential losses if Bitcoin’s price declines.
However, 0xngmi noted that the company had clearly presented itself as a leveraged Bitcoin entity. Therefore, the inherent risks related to Bitcoin volatility were openly acknowledged.
$MSTR – MICROSTRATEGY INC – CLASS ACTION LAWSUIT FILED AGAINST MICROSTRATEGY AND EXECUTIVES – SEC FILING
MICROSTRATEGY INC – LAWSUIT ALLEGES MISLEADING STATEMENTS ON BITCOIN STRATEGY – SEC FILING
— *Walter Bloomberg (@DeItaone) May 19, 2025
Strategy’s Accumulation Holds Strong
Despite the filed lawsuit, Strategy’s current market indicates that a continued buying spree will continue. A deep dive into Saylor’s portfolio tracker indicates that Michael Saylor’s MicroStrategy portfolio reached a value of $60.4 billion, showing a 50.29% gain overall. The portfolio holds about 576,230 shares, with a current market price of $409.21 per share. The net asset value premium stands at 1.85 times, with a NAV of $235.05 per share, significantly below the market price.
According to the portfolio trend, the user tends to add more money to their stocks when the market dips. Sales of these assets increased a lot in the first 6 months of 2021 and picked up again at the end of 2023 into early 2025. The cost of the average market transaction changed with Bitcoin’s, reaching record highs toward the end of 2021 and once more in late 2024. Overall, the dashed green line in the graph went up as my dollar cost average increased.
The current NAV premium level of 1.85x has motivated continued buying activity. According to a post on X by Runner XBT, Saylor’s strategy includes daily purchases from Monday to Friday, excluding holidays, without plans to slow down while the premium remains high. This disciplined accumulation reflects confidence in Bitcoin’s long-term value, with purchase activity increasing during dips and consolidations, supporting the portfolio’s rising value over time.
The case being filed against MicroStrategy and its executives is over statements they allegedly made about Bitcoin being misleading. Still, records from the market show that Michael Saylor keeps confidently buying shares. People are buying the company’s shares because they hope it will continue to benefit from using Bitcoin.
