- The company’s total Bitcoin holdings now stand at 576,230 BTC.
- Average cost basis updated to $69,726 per Bitcoin.
- The lawsuit was filed by Pomerantz LLP in Virginia over alleged investor deception.
MicroStrategy, now rebranded as Strategy, is once again making waves across financial markets.
The company, known for holding the largest corporate stash of Bitcoin, is facing a class action lawsuit alleging misleading accounting practices.
Despite this, it has continued buying more Bitcoin, bringing its total to 576,230 BTC, worth approximately $59 billion.
$764.9M BTC purchase follows lawsuit filing
On 19 May 2025, Strategy disclosed it had acquired an additional 7,390 BTC for $764.9 million.
The average price paid was $103,498 per coin.
The acquisition was financed via an at-the-market (ATM) equity offering and the issuance of Series A STRK preferred stock.
This brings its total holdings to 576,230 BTC at a new average cost of $69,726.
The announcement came just after the firm was hit with a lawsuit filed in the Eastern District of Virginia.
The legal action, initiated by Pomerantz LLP, names both the company and top executives, accusing them of failing to alert investors about the risks posed by updated Bitcoin accounting rules under ASU 2023-08.
The new standard requires firms to reflect the fair market value of Bitcoin on their balance sheets.
According to the lawsuit, Strategy downplayed the impact this would have on its financial statements, allegedly resulting in a $5.91 billion fair-value loss that wasn’t adequately communicated to shareholders.
Use of non-GAAP metrics under scrutiny
The complaint also highlights Strategy’s use of proprietary, non-GAAP metrics such as “BTC Yield” and “BTC $ Gain”.
The plaintiffs argue these terms were not standard financial indicators and may have presented an inflated view of the company’s profitability.
This approach appeared to unravel on 7 April, when the $5.9 billion impairment loss became public.
MSTR shares fell 8.67 percent that day. By 1 May, earnings reports confirmed the blow to the company’s books, and investors responded negatively.
While the firm’s defenders point to long-term Bitcoin appreciation and innovation in digital asset strategy, the lawsuit raises questions about regulatory compliance and transparency.
Accounting experts have noted that non-GAAP metrics must be used carefully, especially when they contradict or obscure established accounting principles.
No strategic shift despite legal risks
Despite the financial hit and legal threats, Strategy has shown no sign of changing course.
Its May filing suggests the firm remains committed to accumulating more Bitcoin, with its latest purchase representing one of the largest single-month acquisitions this year.
Michael Saylor, the company’s chairman, has consistently positioned Bitcoin as “digital gold” and a long-term asset class.
His earlier comment — “My formula for success is rise early, work late, and buy Bitcoin” — continues to define the company’s public stance.
However, the legal case could reshape how other corporations approach digital asset reporting.
