Hedge Fund Doubles Down on Bitcoin—$745M Purchase Amid Legal Firestorm

Talk about conviction. A major investment strategy just dropped three-quarters of a billion on BTC—while simultaneously getting sued over its crypto dealings. Wall Street’s hypocrisy? Priceless.

Legal teams scramble as the fund shrugs off controversy and loads up on digital gold. Because nothing says ’we believe in our thesis’ like buying the dip with a lawsuit hanging over your head.

Bonus jab: Meanwhile, traditional finance still thinks blockchain is just for buying JPEGs of monkeys.

This lawsuit was reportedly filed on May 16 in the U.S. District Court for the Eastern District of Virginia and claims that Strategy and its executives gave misleading statements and didn’t fully explain the risks tied to its Bitcoin strategy. The case names Michael Saylor, Phong Le, and Andrew Kang as defendants, according to the SEC filing.

The lawsuit was filed by Anas Hamza on behalf of investors and seeks damages, legal fees, and other relief. The complaint also covers alleged actions from April 30, 2024, to April 4, 2025. However, the company responded by saying it plans to “vigorously defend” against the claims but admitted it can’t predict the result or potential losses.

To fund the latest Bitcoin purchase, Strategy raised capital by selling 1.7 million MSTR shares and 621,555 STRK shares. The sale generated roughly $765 million in net proceeds. The company still has about $18.9 billion in MSTR shares and $20.7 billion in STRK shares available for future use. It plans to reach $42 billion in Bitcoin holdings by 2027.

In a similar report, Japanese firm Metaplanet has also purchased 1,004 BTC and now holds 7,800 BTC in total. Further, Basel Medical Group announced it is in talks to buy up to $1 billion worth of Bitcoin for its reserves. 

Also Read: Bitcoin at $110K Could Trigger Altseason, Says Arthur Hayes