MicroStrategy Doubles Down on Bitcoin Bet—Drops $765M More After $5.9B Lawsuit Bloodbath
Wall Street shakes its head as Michael Saylor’s crypto gamble gets messier. MicroStrategy just loaded up on another $765 million in BTC—hours after getting slapped with a shareholder lawsuit over $5.9 billion in unrealized Bitcoin losses.
The move reeks of either diamond-handed conviction or corporate hubris, depending which finance bro you ask. Meanwhile, the lawsuit claims executives ’turned a blind eye’ to volatility risks while chasing the crypto dragon.
One thing’s certain: in the high-stakes casino of corporate Bitcoin plays, MicroStrategy keeps pushing chips onto the table. Even as the SEC circles and traditional investors clutch their pearls.
When it comes to Bitcoin, MicroStrategy (now rebranded as Strategy) has been diving headfirst, over and over again. No company has leaned harder into crypto than this one – making it one of the largest corporate Bitcoin holders.
At the heart of it all is Michael Saylor. Come what may – praise or harsh criticism, Saylor doesn’t budge from his belief that bitcoin is “digital gold”.
“My formula for success is rise early, work late, and buy Bitcoin,”
But lately, that no-brakes approach is starting to raise more than just eyebrows.
A fresh lawsuit is now questioning whether the company’s obsession with Bitcoin might be more reckless than revolutionary. And just when you think they’d pull back, they double down with another massive BTC buy.
What is going on?
Investors Push Back: Strategy Slapped With Class Action Lawsuit
MicroStrategy (MSTR) is staring down afiled in the Eastern District of Virginia. The case, led by, targets the firm and key executives for allegedly misleading investors over the financial impact of new Bitcoin accounting rules.
What is this all about?, a standard requiring companies to reflect Bitcoin’s market value on their balance sheets. According to the suit, Strategy failed to adequately warn investors of the potentialfair-value loss under the updated rules.
The complaint also accuses the company of sugarcoating reality through made-up metrics likeandpainting a far rosier picture of profitability than GAAP numbers WOULD support.
It didn’t go unnoticed. On, after the $5.9B bombshell surfaced, MSTR stock dropped. By, earnings confirmed the dent – and investors weren’t amused. And that’s when things came crumbling down.
Meanwhile, Another Bitcoin Buy?
If you thought the lawsuit might slow Strategy down, think again.
According to a May 19 filing, the company has snapped up another– worth– at an average price ofper coin. The purchase was funded through anand newly issued.
That brings Strategy’s total stash to, now valued around, with a new average cost basis of.
A Strategy Set in Stone
Here’s what’s odd: a high-stakes lawsuit, billions in reported losses, and yet – business as usual. There’s no sign of a pivot. No course correction.
Love it or hate it, Strategy does not seem to be backing down. Will it be the key to their success or the first domino of their downfall? Time shall tell.
