INSUBCONTINENT EXCLUSIVE:
Strategy, formerly MicroStrategy, pioneered the use of Bitcoin (BTC) as an asset reserve for corporate treasuries
The company has been since 2020 making regular purchases of Bitcoin, with over 601,550 BTC in its balance sheets and no plans to cap the
accumulation.Now, Strategy has investors questioning its crypto approach
As of mid-July, at least seven law firms have filed complaints against Strategy
Many of the complaints have similar claims, echoing that the defendants overstated the anticipated profitability of its Bitcoin investment
strategy and understated volatility risks, as well as the magnitude of losses the company could recognize following the adoption of the ASU
2023-08 accounting principles.During the first three months ended March 31, 2025, the company recorded an unrealized fair value loss on
digital assets of $5.9 billion.In an interview with Cointelegraph, crypto lawyer Tyler Yagman, an associate at The Ferraro Law Firm, said
The disclosure occurred in an 8-K filing to the SEC, wherein Strategy wrote, "[w]e may not be able to regain profitability in future
periods, particularly if we incur significant unrealized losses related to our digital assets."Brandon Ferrick, general counsel for Web3
not that these things were entirely absent from disclosures
at time of publication.The class action lawsuits have not stopped Strategy from continuing its Bitcoin (BTC) accumulation
On Monday, the company bought another $472 million worth of BTC
complaints against Strategy include Pomerantz LLP, Robbins Geller Rudman & Dowd LLP, Glancy Prongay & Murray LLP, The Schall Law Firm,
of genius or risky gamble?Strategy's share price over five years
Source: Google FinanceRelated: Bitcoin bear Vanguard is now the largest shareholder of StrategyTransparency key for crypto treasury
companiesThe crypto space has entered a new era with the launch of Bitcoin exchange-traded funds (ETFs) in January 2024, with growing
institutional capital entering the industry
Analysts surveyed by TipRanks expect an earnings per share (EPS) of -0.10, following a sharp miss last quarter when the company posted a
