At least seven law firms have filed lawsuits against Strategy, formerly known as MicroStrategy, accusing the company of securities fraud. The filings claim Strategy misled investors about its Bitcoin investment strategy by overstating potential profits and downplaying risks.
The lawsuits refer to the company’s disclosure of a $5.9 billion unrealized loss on its digital assets. This was reported in Strategy’s 8-K SEC filing on April 7, 2025. The same day, Strategy’s share price dropped 8.7%. The company wrote in the filing,
“We may not be able to regain profitability in future periods, particularly if we incur significant unrealized losses related to our digital assets.”
Law firms involved include Pomerantz LLP, Robbins Geller Rudman & Dowd LLP, Glancy Prongay & Murray LLP, The Schall Law Firm, Kessler Topaz Meltzer & Check LLP, and Bronstein, Gewirtz and Grossman LLC.
Legal Experts Say Strategy Lawsuits May Take Years
Crypto lawyer Tyler Yagman, from The Ferraro Law Firm, said the Strategy class action lawsuits could take years to resolve. He noted that many cases like these do not reach trial or result in large settlements.
“What we see […], a lot of times these class actions are filed, they end up kind of spurring out and not going anywhere,”
Yagman said during an interview.
Brandon Ferrick, general counsel at Duoro Labs, added that such lawsuits are common in crypto. He said the complaints focus on how Strategy presented its Bitcoin strategy in its investor communications—not that risks were entirely omitted.
“Plaintiffs are alleging that profitability was overstated and that risks were understated — not that these things were entirely absent from disclosures,”
Ferrick stated.
Strategy Continues Bitcoin Purchases Despite Legal Scrutiny
On July 15, Strategy announced it had bought another $472 million in Bitcoin. The purchase came days after it disclosed its unrealized losses. As of now, the Michael Saylor company holds over 601,550 BTC.
This latest Bitcoin purchase also followed the company reaching its highest-ever market capitalization. Saylor, who serves as executive chairman, shared the milestone on his X account.
The lawsuits have not slowed down the company’s Bitcoin strategy. It continues to use BTC as a key reserve asset, a policy it started in 2020.
Increased Demand for Transparency From Crypto Treasury Firms
Yagman said that crypto treasury firms like Strategy must now provide more detailed financial disclosures. He noted that these firms operate like actively managed funds but under a corporate structure.
“We’re now seeing an emergence of crypto-based treasury companies that operate like actively managed ETFs, but in a company structure,”
Yagman explained.
He added that management must be clear and specific in financial filings due to the high volatility of crypto markets. The rise of Bitcoin ETFs in January 2024 brought more institutional capital, which increased the demand for transparency.
Strategy Q2 2025 Earnings Expected July 31
According to its website, Strategy will report Q2 earnings on July 31, 2025. Analysts from TipRanks forecast an EPS of -0.10. In the previous quarter, the company posted an EPS of -16.53, missing expectations.
This report will follow the company’s $472 million Bitcoin purchase and legal developments. The earnings data may show how the company’s Bitcoin holdings impacted its financials during Q2.
