A securities class action has been filed in the USDC – E.D.VA. against MicroStrategy Incorporated d/b/a Strategy (MSTR) (“Strategy” or the “Company”), on behalf of all persons and entities that purchased or otherwise acquired Strategy securities between April 30, 2024, and April 4, 2025, both dates inclusive (the “Class Period.

Strategy, together with its subsidiaries, provides enterprise analytics software and services purportedly powered by artificial intelligence (“AI”). Since 2020, the Company has increasingly focused on purchasing and holding bitcoin, a type of crypto-currency,1 as a long-term business strategy. In October 2023, this strategy became so central to the Company’s operations that it began referring to itself as a “Bitcoin Treasury Company” that primarily uses proceeds from equity and debt financings, as well as cash flows from its operations, to accumulate bitcoin, which serves as its primary treasury reserve asset.

The claim arises on April 7, 2025, during pre-market hours, when Strategy filed a current report on Form 8-K with the SEC disclosing that, following its adoption of ASU 2023-08, it had recognized a $5.91 billion unrealized loss on its digital assets for the first quarter of 2025.

The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding Strategy’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that:

(1) the anticipated profitability of the Company’s bitcoin-focused investment strategy and treasury operations was overstated;

(2) the various risks associated with bitcoin’s volatility and the magnitude of losses Strategy could recognize on the value of its digital assets following its adoption of ASU 2023-08 were understated; and

(3) as a result, Defendants’ public statements were materially false and misleading at all relevant times, thereby harming investors.

If you purchased Strategy securities during the Class Period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.

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