Strategy is sued for alleged omission on accounting impact of bitcoin

• Investors sue Strategy over misleading bitcoin claims
• Strategy is accused of omitting losses with crypto assets
• Lawsuit questions impact of new accounting rules

New York law firm Pomerantz LLP has filed a class action lawsuit against Strategy, alleging that the company provided misleading information to the market about its bitcoin investment strategy. The lawsuit, filed in the U.S. District Court for the Eastern District of Virginia, covers investors who purchased shares of the company between April 30, 2024, and April 4, 2025.

🚨 JUST IN: Strategy is facing a lawsuit for allegedly hiding Bitcoin risks and misleading investors. 💼📉

The suit claims the company failed to disclose the volatile nature of Bitcoin, putting investors at significant financial risk. 🧐🔍 #Crypto # Bitcoin #Lawsuit #Investing ... pic.twitter.com/u6hFucoeUC

According to petition , Strategy allegedly overstated the profits it made from bitcoin and understated the risks associated with the asset's volatility. The lawsuit also alleges that the company was not transparent about the effects of adopting new accounting standards ASU 2023-08, which require fair value accounting for crypto assets.

The previous model, based on impairment, only recognized losses in the event of depreciation. The new model also accounts for unrealized gains, which brought significant losses to light. The lawsuit highlights that Strategy omitted the full financial impact of the change, even after adopting the standard.

“Defendants have consistently provided optimistic assessments of Strategy’s performance as a bitcoin treasury company following the adoption of ASU 2023-08,” the firm said. According to the filing, the company disclosed metrics such as BTC Yield and BTC Gain in USD, but failed to report potential losses under the new accounting.

The lawsuit specifically cites an unrealized loss of $5,9 billion on digital assets in the first quarter of 2025. That revelation would have caused the company's shares to drop by more than 8%.

Strategy, formerly called MicroStrategy, is led by Michael Saylor and has accumulated 597.325 BTC, making it the largest holder of bitcoin among publicly traded companies. Its prominent role in the sector has led other companies, such as Metaplanet, to follow similar strategies.

Despite recent controversies, Strategy (MSTR) shares closed last Wednesday up 7,76%, quoted at US$ 402,28. The accumulated appreciation over the last five years exceeds 3.300%, according to data from Yahoo Finance.