What started as a potentially high-stakes legal showdown for one of the biggest Bitcoin treasury firms has come to an unexpected halt. Investors who once accused Strategy Inc. of misleading shareholders about its crypto-heavy approach have now decided to back off, voluntarily dropping their class action lawsuit.
This turn of events marks a significant relief for the company, which had been gearing up to fight allegations of poor transparency and questionable risk disclosures.
The Allegations That Sparked the Case
The lawsuit was initially filed in the U.S. District Court for the Eastern District of Virginia, spearheaded by investor Anas Hamza and handled by law firm Pomerantz LLP.
Their complaint targeted not just the company but also some of its top names: co-founder Michael J. Saylor, CEO Phong Le, and CFO Andrew Kang.
The accusations centered on violations of federal securities laws, specifically Section 10(b) and Rule 10b-5, along with Section 20(a) of the Securities Exchange Act of 1934.
In simpler terms, investors believed Strategy Inc. wasn’t being fully honest about two things:
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The financial risks tied to its massive Bitcoin-buying strategy.
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The impact of a new accounting rule, ASU No. 2023-08, which forces companies to report crypto assets at fair market value and record gains or losses directly in earnings.
Plaintiffs Decide to Walk Away
But just as the case was building momentum, Bloomberg Law revealed that the plaintiffs voluntarily dismissed their claims.
The agreement, filed jointly with Strategy Inc., closes the case with prejudice—meaning the named plaintiffs cannot file the same lawsuit again.
However, this ruling does not stop other potential class members from pursuing separate action if they wish.
The original lawsuit covered a class period from April 30, 2024, to April 4, 2025, and had sought damages, legal fees, and other financial relief.
With the withdrawal, the case ends without a settlement or trial.
What This Means for Strategy Inc.
For Strategy Inc., this dismissal is a major win.
The company had already signaled it would “vigorously defend” itself, insisting that its disclosures about Bitcoin risks and accounting methods were accurate and complete.
The timing is also noteworthy. Recently, Strategy raised $359 million through a stock sale, using the funds to buy an additional 3,081 Bitcoin.
That move boosted its already enormous Bitcoin holdings to 632,457 BTC, valued at about $68.5 billion at the time of writing.
Market Snapshot
Even with this legal cloud now lifted, Strategy Inc. isn’t immune to market swings.
Its stock, MSTR, is trading at $334.41, reflecting a drop of 4.43% in the last day and 10.23% over the past five days.
Meanwhile, Bitcoin itself is holding strong at $107,805, showing the continued volatility—and potential—of the crypto space.
The Bigger Picture
This case serves as another reminder of the fine line companies must walk when balancing investor expectations with the unpredictable nature of cryptocurrency markets.
While Strategy Inc. has dodged a courtroom battle for now, its bold Bitcoin-first strategy will likely remain under the microscope as regulations evolve and market conditions shift.
