{"id":24109,"date":"2025-05-19T18:05:47","date_gmt":"2025-05-19T15:05:47","guid":{"rendered":"https:\/\/forklog.com\/en\/strategy-faces-allegations-of-concealing-bitcoin-risks\/"},"modified":"2025-05-19T18:05:47","modified_gmt":"2025-05-19T15:05:47","slug":"strategy-faces-allegations-of-concealing-bitcoin-risks","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/strategy-faces-allegations-of-concealing-bitcoin-risks\/","title":{"rendered":"Strategy Faces Allegations of Concealing Bitcoin Risks"},"content":{"rendered":"<p>On May 19, the company Strategy <a href=\"https:\/\/assets.contentstack.io\/v3\/assets\/bltf8d808d9b8cebd37\/bltfba7ca0af6a9f6a8\/682a9fc86555216ab73157fb\/form-8-k_05-19-2025.pdf\">was hit<\/a> with a class-action lawsuit. The firm&#8217;s leadership is accused of making &#8220;false or misleading statements&#8221; about the profitability of its bitcoin strategy and concealing the asset&#8217;s volatility risks. <\/p>\n<p>The allegations involve Chairman Michael Saylor, CEO Phong Le, and CFO Andrew Kang. The plaintiffs cite violations of securities law.<\/p>\n<p>The plaintiffs&#8217; representative, Anas Hamza, stated that the claims are made on behalf of a group of investors for the period from April 30, 2024, to April 4, 2025. Strategy emphasized that it &#8220;intends to defend itself vigorously.&#8221;<\/p>\n<p>At the time of writing, Strategy <a href=\"https:\/\/bitcointreasuries.net\/\">holds<\/a> 576,230 BTC, purchased for $40.2 billion (average price \u2014 $69,726). With the current bitcoin price at $102,615, the company&#8217;s unrealized profit exceeds $19.2 billion.  <\/p>\n<p>The founder of DeFi Llama, known as 0xngmi, criticized the lawsuit, noting that Strategy &#8220;has openly positioned itself as a leverage play on bitcoin.&#8221;<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">the lawsuit seems to be people complaining that microstrategy understated how much money it could lose if BTC went down<\/p>\n<p>but if you&#8217;re buying a company that is self-labelled as &#8220;leverage on bitcoin&#8221;, what do you expect? it&#8217;s pretty clear what will happen if btc goes down <a href=\"https:\/\/t.co\/w0Dis8ZUM9\">https:\/\/t.co\/w0Dis8ZUM9<\/a> <a href=\"https:\/\/t.co\/I6Uw6zMcqJ\">pic.twitter.com\/I6Uw6zMcqJ<\/a><\/p>\n<p>\u2014 0xngmi (@0xngmi) <a href=\"https:\/\/twitter.com\/0xngmi\/status\/1924443462566302056?ref_src=twsrc%5Etfw\">May 19, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In his view, the claims of underestimating risks are unfounded:<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;What else do you expect when buying shares of such a company?&#8221;<\/em><\/p>\n<\/blockquote>\n<p>A day before the lawsuit was filed, Strategy purchased 7,390 BTC for $764.9 million. The average purchase price was $103,500 per coin.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Never short a man who buys orange ink by the barrel. <a href=\"https:\/\/t.co\/4h2sEbIraT\">pic.twitter.com\/4h2sEbIraT<\/a><\/p>\n<p>\u2014 Michael Saylor (@saylor) <a href=\"https:\/\/twitter.com\/saylor\/status\/1924072656057356779?ref_src=twsrc%5Etfw\">May 18, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In the first quarter, Strategy <a href=\"https:\/\/forklog.com\/en\/news\/strategys-losses-surpass-4-billion-since-start-of-year\">earned<\/a> $5.8 billion from bitcoin, while the company&#8217;s losses exceeded $4 billion.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On May 19, the company Strategy was hit with a class-action lawsuit. The firm&#8217;s leadership is accused of making &#8220;false or misleading statements&#8221; about the profitability of its bitcoin strategy and concealing the asset&#8217;s volatility risks. The allegations involve Chairman Michael Saylor, CEO Phong Le, and CFO Andrew Kang. The plaintiffs cite violations of securities [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":24108,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1538,1162,1207],"class_list":["post-24109","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin-purchase","tag-court-cases","tag-microstrategy"],"aioseo_notices":[],"amp_enabled":true,"views":"18","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/24109","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=24109"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/24109\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/24108"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=24109"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=24109"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=24109"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}