A new standard revealed not reported losses, affecting confidence around the company.
Investors seek compensation for deceptive statements.
An earthquake shakes Strategy’s foundations (former Microstrategy), the pioneer company in Bitcoin’s corporate adoption (BTC). This is because it has received a collective claim that alleges a calculated misrepresentation of its treasury strategy, leaving investors with devalued actions and many questions.
The lawsuit, which was announced by the law firm Pomrantz LLP on May 18, alleges that the company founded by Michael Saylor and certain executives artificially inflated the success of their aggressive treasury strategy in BTC.
The litigation, which was presented Before the United States District Court for Eastern District of Virginia with file number 25-CV-00861, it represents investors who acquired Strategy actions between April 30, 2024 and April 4, 2025. And, through this, they request compensation for alleged violations of federal laws of values.
This argues that the company introduced key performance indicators (KPI) on its Bitcoin treasury strategy that, as accused, minimized the risks associated with the volatility of the digital currency.
A turn for an accounting change
The key moment that changed everything was on January 1, 2025, when Microstrategy had to start using a new accounting rule (called Asu 2023-08). This forces companies listed in the stock market to inform their cryptoactive holdings for their current market price, something that is called “fair value” of digital assets, as reported by cryptootics last December.
Before this, Strategy used another accounting method, with which Bitcoin’s price in his reports did not reflect all quarterly rises and declines. It was as if part of volatility was hidden, according to the plaintiffs.
But still, the demand says that, although Strategy knew that with the new rule great potential losses would be seen if the price of BTC dropped, investors were not clearly warned. Moreover, emphasize that They constantly provided optimistic evaluations of Strategy’s performance as a Bitcoin treasury company After accounting change.
He adds that, after the accounting change, Strategy surprised investors by informing an unrealized loss of 5,910 million dollars in their Bitcoin holdings for the first quarter of 2025, for a depreciation of the currency. This information caused a 8.67% drop in the company’s shares, which closed at $ 268.14 per share.
“The defendants painted a too optimistic image of Strategy’s strategy with respect to Bitcoin, omitting the enormous risks and losses that materialized,” Danielle Peyton insisted, by Pomrantz LLP, a firm dedicated since its foundation more than 85 years ago to corporate litigation.
The initiative also invites Strategy shareholders to join as plaintiffs in the litigation. As he clarified, those interested in joining the group have until July 15, 2025.
At the moment, Strategy has not issued any public statement on the claim. Although, to know its version in this regard, cryptootics sent request for comments to the company that at the time of publication of this note still did not respond.
The demand clearly mentions that the losses are “not made” and result from the new accounting standard (ASU 2023-08), which forces to assess digital assets to the current value. However, do not explore the possibility that These losses can be reversed with a recovery of the price of Bitcoinwhich could weaken the perception of demand.
Despite this situation, some community members They believe that There are not many possibilities for demandconsidering that the risks have been communicated. However, it is feared that its development can prevent the company from buying more bitcoin, exerting pressure on its actions (Mstr), and affecting the feeling of the market. Although everything will depend on how fast Saylor acts and may perhaps reach an extrajudicial agreement with the plaintiffs.
