MicroStrategy Faces Class Action Lawsuit Over Bitcoin Strategy

• 19 May 2025
• |
• 16:34

According to the information and recent securities filings, MicroStrategy has disclosed that it is facing a purported class action lawsuit related to its Bitcoin-focused investment strategy.

The lawsuit, filed in the U.S. District Court for the Eastern District of Virginia, names MicroStrategy, Executive Chairman Michael Saylor, CEO Phong Le, and CFO Andrew Kang as defendants. The plaintiff, Anas Hamza, is seeking to represent a class of investors who purchased shares between April 30, 2024, and April 4, 2025.

The complaint alleges that the company and its executives made false or misleading statements—or failed to disclose material information—regarding the expected profitability of its Bitcoin investment strategy and treasury operations. It also accuses them of downplaying the risks associated with the cryptocurrency’s volatility and the scale of potential losses.

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The suit seeks unspecified damages, interest, and additional relief on behalf of the proposed class. This comes as MicroStrategy reported a $5.9 billion unrealized loss in Q1, further intensifying scrutiny over its aggressive crypto strategy.