Michael Saylor’s Strategy Expands Bitcoin Holdings With Latest $765 Million Purchase Amid Class Action Lawsuit

It’s Monday in crypto, so you know what that means: Bitcoin treasury firm Strategy has announced another big buy. However, the latest purchase came as the Tysons, Virginia-based company, was hit with a class action lawsuit. Another $764.9 Million in Bitcoin Michael Saylor’s Bitcoin development company, Strategy — formerly known as MicroStrategy — added 7,390 BTC to its balance sheet from May 12 to May 18, spending a cool $764.9 million on the digital asset, according to an 8-K filing with the Securities and Exchange Commission on May 19. https://twitter.com/saylor/status/1924436184664559807 The purchase brings its total holdings to 576,230 BTC, now valued at over $59 billion at current market prices. That’s equivalent to 2.74% of Bitcoin’s total 21 million supply. Strategy’s average purchase price for its entire Bitcoin stash now stands at $69,726. Strategy’s latest purchase comes as Metaplanet fortifies its standing as Asia’s answer to Strategy. The Tokyo-listed firm also announced on Monday that it had snapped up 1,004 BTC, costing around $104.8 million. The purchases by these two Bitcoin-stacking companies likely helped the asset jump to nearly $107,000 on Sunday. Bitcoin was recently trading for $104,607, according to CoinGecko data. Strategy Slapped With Class Action Lawsuit Strategy’s May 19 regulatory filing also reveals that the company is facing a class action lawsuit filed in the US District Court for the Eastern District of Virginia. The company’s Executive Chairman, Michael Saylor, President and CEO, Phong Le, and executive vice president and chief financial officer, Andrew Kang, are named as defendants in the suit. The suit accuses Strategy officials of “violations of Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 10b-5 thereunder, and Section 20(a) of the Exchange Act. “The [suit claims] that the named defendants made false and/or misleading statements with respect to and/or failed to disclose information with respect to the anticipated profitability of our Bitcoin-focused investment strategy and treasury operations, and the various risks associated with Bitcoin’s volatility,” the lawsuit reads. Crypto commentator 0xngmi suggested in a Monday post on X that the suit is baseless. 0xngmi believes that it “seems to be people complaining that [Strategy] understated how much money it could lose if BTC went down.” Still, he contended that the risks were not understated: “You’re buying a company that is self-labelled as “leverage on Bitcoin,” what do you expect?” Meanwhile, Strategy has said it will “vigorously” defend itself against the allegations outlined in the class action lawsuit.

Source: ZyCrypto