MicroStrategy and its executives have been sued in a class-action complaint filed in the U.S. District Court for the Eastern District of Virginia. The complaint, which was made public in a recent filing with the SEC, alleges the company’s leaders of making false statements about its Bitcoin investment policy and related risks. Nevertheless, the strategy portfolio tracker has suggested an ongoing accumulation as the lawsuit is in sight.
Facts of the Allegations and Reaction from the Crypto Space
The complaint is aimed at MicroStrategy chairman Michael Saylor, president and CEO Phong Le, and executive vice president and CFO Andrew Kang. The complaint accuses them of violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, as well as Section 20(a) of the same act.
Based on the complaint, the defendants issued false or deceptive statements regarding MicroStrategy’s Bitcoin-targeted investment policy’s potential profitability. The suit also alleges they did not disclose the risks associated with the price volatility of Bitcoin.
A developer named 0xngmi from the DeFi data platform DefiLlama posted a stance X. He responded to Walter Bloomberg’s post, where he labeled the lawsuit as unfounded. According to him, the case principally laments MicroStrategy for supposedly understating potential losses in case the price of Bitcoin goes down. But 0xngmi also pointed out that the company had very much painted itself as a leveraged Bitcoin vehicle. Thus, the risks inherent to Bitcoin volatility were explicitly acknowledged.
Strategy’s Accumulation Holds Strong
In spite of the lawsuit filed, Strategy’s current market reveals that the ongoing buying frenzy will persist. A dive into Saylor’s portfolio tracker reveals that Michael Saylor’s MicroStrategy portfolio hit a value of $60.4 billion, with a 50.29% gain overall. The portfolio contains approximately 576,230 shares with a present market price of $409.21 per share. The premium on net asset value is 1.85 times with a NAV of $235.05
per share, well below the market value.
From the portfolio trend, the user is inclined to invest additional money in his or her stocks when the market goes down. Sales of the assets rose significantly in the initial 6 months of 2021 and picked up once more near the end of 2023 to early 2025. The average market transaction price changed with Bitcoin’s, setting all-time highs near the close of 2021 and again late in 2024. Generally, the green dashed line on the graph rose as my dollar cost average rose.
The existing NAV premium rate of 1.85x has encouraged sustained buying action. In a post on X by Runner XBT, Saylor’s plan involves buying daily from Monday to Friday, excluding public holidays, with no intention of letting up as long as the premium persists. This systematic accumulation indicates faith in Bitcoin’s intrinsic worth over the long term, with buying increasing during dips and troughs, sustaining the value of the portfolio over the longer term.
The suit that is being brought against MicroStrategy and its management is for statements they purportedly made regarding Bitcoin that are misleading. Despite all this, the records in the market indicate that Michael Saylor continues to purchase shares confidently. Individuals are purchasing the shares of the company because they expect it to keep profiting from utilizing Bitcoin.