MicroStrategy’s Bitcoin Bet Backfires: Saylor Slapped With Class-Action Over Corporate Treasury Risk

Bitcoin maximalists just got a reality check—MicroStrategy’s billion-dollar crypto gamble now faces legal fire. A class-action lawsuit targets Michael Saylor’s aggressive BTC accumulation strategy, alleging shareholder deception as volatility wreaks havoc on corporate balance sheets.

When the SEC won’t come after your crypto play, trial lawyers will. The suit claims MicroStrategy misrepresented risks of its Bitcoin treasury strategy—because apparently, ’number go up’ isn’t adequate risk disclosure for publicly traded companies.

Wall Street shakes its head: ’We told you so’ never sounded so expensive. Meanwhile, Saylor doubles down—because when your only tool is a Bitcoin hammer, every problem looks like a fiat nail.

Strategy Continues to Buy, Other Firms Follow

As of May 18, Strategy holds 576,230 BTC acquired for around $40.2 billion at an average price of $69,726 per coin.

Never short a man who buys orange ink by the barrel. pic.twitter.com/4h2sEbIraT

At current prices, the company’s total holdings are valued at more than $59.2 billion, representing an unrealized gain of $19.2 billion, or 47%.

Since the filing, Strategy continues to acquire Bitcoin with its latest 7,390 BTC purchase valued at $764.9 million.

A new projection by research and brokerage firm Bernstein suggests that corporations could collectively allocate as much as $330 billion into Bitcoin by 2029.

Bernstein analysts believe this surge will primarily be driven by public companies emulating MicroStrategy’s Bitcoin treasury strategy.

BitBO data further illustrates the growing institutional interest, showing that public companies now collectively hold more than 739,501 BTC worth over $68 billion.

Speculators Fear the Strategy Lawsuit Could Prompt Further Enforcement Action

Commentators fear the Strategy lawsuit could set a precedent for broader enforcement, posing a threat to corporate Bitcoin treasuries.

Pseudonymous X analyst Vagada noted that the lawsuit could “test the legal frontier” of corporate Bitcoin adoption.

If true, this could test more than just Saylor’s strategy—it tests the legal frontier of corporate Bitcoin adoption. But conviction under fire? That’s when legends or liabilities are made.

Others, however, argue the suit lacks merit. Pseudonymous developer 0xngmi from DeFiLlama criticized the case in a May 19 X post.

the lawsuit seems to be people complaining that microstrategy understated how much money it could lose if BTC went down

but if you’re buying a company that is self-labelled as "leverage on bitcoin", what do you expect? it’s pretty clear what will happen if btc goes down https://t.co/w0Dis8ZUM9 pic.twitter.com/I6Uw6zMcqJ

He dismissed claims of understated risks, stating, “You’re buying a company that is self-labelled as ‘leverage on Bitcoin,’ what do you expect?