In a significant development for the crypto and fintech sectors, five prominent law firms have independently filed class-action lawsuits against Strategy, formerly known as MicroStrategy, alleging securities fraud tied to the company’s aggressive Bitcoin investment strategy. The legal actions, filed in U.S. federal courts, center on claims that Strategy misled investors about both the risks and the potential returns of its substantial Bitcoin holdings between April 2024 and April 2025 .
What Are the Lawsuits About?
The core allegation is that Strategy made “materially false and misleading” statements regarding the profitability and risk profile of its Bitcoin-focused treasury operations. According to the complaints, the company overstated the anticipated gains from its Bitcoin investments and downplayed the volatility and potential losses associated with such a large digital asset position . The lawsuits also point to insufficient disclosure about the impact of new accounting standards (ASU 2023-08) on the valuation of Strategy’s digital assets .
Who’s Involved?
The first lawsuit was filed by Pomerantz LLP on May 16, 2025. Since then, Gross Law Firm, Bronstein Gewirtz & Grossman, Kessler Topaz Meltzer & Check, and Levi & Korsinsky have each filed similar suits, rather than joining a single consolidated case . This approach is common in high-profile securities litigation, as law firms compete for the lucrative role of lead counsel—a position that can yield fees in the tens of millions of dollars .
Legal experts note that the court will ultimately appoint as lead plaintiff the investor who suffered the largest financial harm and is willing to represent the class. Law firms are actively seeking such investors, often large institutions, to strengthen their cases and improve their chances of being named lead counsel .
Why Now?
The lawsuits come on the heels of Strategy latest Bitcoin purchase. CEO Michael Saylor recently announced the acquisition of an additional 245 BTC for approximately $26 million, bringing the company’s total holdings to 592,345 BTC—acquired at a cumulative cost of about $41,87 billion, now valued at nearly $60 billion . Despite these impressive numbers, the company is facing scrutiny over an estimated $6 billion in unrealized Bitcoin losses, which has intensified investor concerns and legal challenges .
Industry Context
Strategy’s bold Bitcoin accumulation strategy has made it a bellwether for institutional crypto adoption. However, the current legal challenges highlight the importance of transparent risk disclosures and accurate financial reporting in the rapidly evolving digital asset landscape. The outcome of these lawsuits could set important precedents for how publicly traded companies communicate about crypto-related risks and opportunities.
