Strategy Firm Faces Legal Scrutiny Over Bitcoin Losses
Michael Saylor, executive chairman of the firm now known simply as Strategy (formerly MicroStrategy Inc.), may be preparing to purchase more Bitcoin—even as the company faces a lawsuit tied to a staggering $5.9 billion loss in Q1 2025 related to its crypto holdings.
On Sunday, Saylor stirred speculation by posting a Bitcoin acquisition chart on X (formerly Twitter) with the caption: “Nothing Stops This Orange.” This phrase has historically signaled an imminent Bitcoin purchase by the company, which currently holds the largest Bitcoin reserves of any publicly traded corporation—592,100 BTC, valued at approximately $59.7 billion.
However, not all investors are on board with Saylor’s bold crypto strategy.
Investor Lawsuit Alleges Misleading Conduct and Insider Trading
A lawsuit filed by investor Abhey Parmar accuses Saylor and other executives of misleading shareholders about the risks tied to Bitcoin’s volatility. The complaint centers around a new accounting rule that allowed Strategy to report its Bitcoin holdings at market value. While the intent was to provide more transparency, the rule also exposed massive swings in valuation—leading to a multibillion-dollar reported loss.
According to the lawsuit, executives failed to disclose the financial risk and allegedly engaged in insider trading, selling company stock while prices were artificially high. Parmar claims these actions misled investors and resulted in inflated stock values before the correction.
Despite the legal challenges and significant losses, shares of MicroStrategy Inc. have rebounded impressively. The stock is up nearly 28% year-to-date, recovering strongly from its April lows.
While the lawsuit continues, Saylor’s recent social media activity suggests he remains undeterred in his commitment to Bitcoin. For now, it appears Strategy is doubling down on its role as the largest corporate holder of BTC—legal headwinds and market volatility notwithstanding.
