- Lawsuit claims Strategy hid $5.91B loss from Bitcoin accounting rules (ASU 2023-08), causing MSTR stock to drop 8.67% in April.
- Latest BTC purchase funded via stock sales; average cost now $69,726 per Bitcoin despite $103,498 buy-in price.
Software firm Strategy (formerly MicroStrategy) purchased an additional 7,390 Bitcoin (BTC) in May, spending $764.9 million to expand its holdings to 576,230 BTC. The move comes amid a class-action lawsuit alleging the company misled investors about financial risks tied to its Bitcoin strategy.
Lawsuit Alleges Misleading Accounting Practices
A lawsuit filed in Virginia’s Eastern District accuses Strategy of downplaying potential losses from new accounting rules (ASU 2023-08), which require firms to report Bitcoin’s market value on balance sheets. The plaintiffs, represented by Pomerantz LLP, claim Strategy failed to disclose a $5.91 billion fair-value loss linked to these rules and used non-standard metrics like “BTC Yield” to inflate perceived gains.
After the loss disclosure on April 7, Strategy’s stock fell 8.67%. Shares dipped further post-earnings on May 1, reflecting investor unease.
Strategy funded its latest BTC acquisition through stock sales, paying an average of $103,498 per Bitcoin. The firm’s total holdings now exceed $59 billion, with an average cost basis of $69,726 per BTC. CEO Michael Saylor, a vocal Bitcoin advocate, has repeatedly stated his commitment to accumulating BTC, calling it “digital gold.”
The lawsuit highlights tensions between Strategy’s aggressive Bitcoin strategy and regulatory compliance. While the company’s BTC holdings have appreciated, critics argue its accounting practices obscure risks. The case could test how firms disclose cryptocurrency exposures under updated standards.
Strategy’s stock (MSTR) remains closely tied to Bitcoin’s price, which has fluctuated between $102,000 and $105,000 in recent weeks. Legal outcomes may influence investor confidence in corporate crypto strategies, particularly those reliant on volatile assets.
Strategy (MSTR) – Real-Time Stock Price & Technical Analysis – May 17, 2025
Strategy (MSTR) is currently trading at $409.16, up +2.34% today, continuing its bullish structure in alignment with Bitcoin’s macro uptrend. Over the past month, the stock has surged +30.16%, reflecting renewed institutional appetite for BTC-tied equities.
Year-to-date, MSTR is up +36.13%, and a massive +172.19% over the past 12 months, confirming it remains one of the most leveraged proxies for Bitcoin exposure on public markets.
Technically, MSTR is attempting to break through the $410–$420 resistance range. If successful, the next price target lies near $437–$450, while immediate support rests at $390.
Some traders have pointed out an unfilled gap between $300–$320, which could act as a magnetic level if the current rally fails. Market momentum remains strong, but volatility is elevated, as the stock responds quickly to BTC fluctuations.
On the fundamental side, Strategy’s valuation is increasingly driven by its over 214,000 BTC holdings, making it the largest corporate Bitcoin holder. However, a class-action lawsuit has recently been filed, alleging the company misrepresented crypto risk exposure—adding headline risk in the near term. The company’s next earnings report is scheduled for August 5, 2025, with an EPS estimate of –$0.12 and projected revenue of $113.65 million.
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