MicroStrategy Inc. (MSTR) Securities Class Action Lawsuit Update [June 14, 2025]

Introduction  to MicroStrategy Inc.  (MSTR) Lawsuit

A securities fraud class action lawsuit has been filed against MicroStrategy Incorporated, doing business as “Strategy” (NASDAQ: MSTR), on behalf of investors who purchased MicroStrategy stock between April 30, 2024, and April 4, 2025 (the “Class Period”). The complaint alleges that MicroStrategy and certain executives violated federal securities laws by making materially false and misleading statements regarding its Bitcoin-focused treasury strategy, the financial impact of adopting fair value accounting, and associated risks to Microstrategy, Inc. shareholders. 

MicroStrategy Inc. (MSTR) Lawsuit Case Details  

Hamza v. MicoStrategy, Inc., et al  

Case No.: 1-25-cv-00861 

U.S. District Court, Eastern District of Virginia 

Filed on May 16, 2025 

MicroStrategy Inc. (MSTR) Company Profile  

MicroStrategy Incorporated, now doing business as “Strategy,” is a Virginia-based technology company that has redefined itself around Bitcoin. While it continues offering enterprise analytics software, its core identity now centers on using capital—including equity and debt offerings—to accumulate and hold Bitcoin as a treasury reserve asset. 

By 2024, Strategy was the largest corporate Bitcoin holder worldwide. The company introduced internal metrics like BTC Yield and BTC $ Gain to highlight value creation through digital asset accumulation. Its leadership framed this approach not as a diversification, but as the company’s primary business model 

 Class Period:  

April 30, 2024 to April 4, 2025, inclusive 

Investors who purchased MicroStrategy securities during the Class Period may be eligible to participate in the MicoStrategy, Inc. class action lawsuit. 

 Allegations in the MicroStrategy Inc. (MSTR) Lawsuit  

The complaint alleges that MicroStrategy—operating as “Strategy”—misled investors about the risks and performance of its Bitcoin-centric treasury strategy during its transition to fair value accounting under ASU 2023-08. Recasting itself as a “Bitcoin Treasury Company,” Strategy promoted metrics like BTC Yield and BTC $ Gain to present its Bitcoin accumulation as inherently value-accretive. However, according to plaintiffs, the company failed to disclose how this new accounting framework could expose it to massive unrealized losses in volatile market conditions. 

Beginning with its Q1 2024 earnings call on April 29, 2024, Strategy maintained a highly bullish narrative. Executives described Bitcoin’s volatility as a strategic asset and suggested that the accounting change would enhance transparency. SEC filings for Q1 through Q3 2024 acknowledged that ASU 2023-08 might increase financial volatility, but downplayed the scale of risk and gave no quantitative downside modeling. Meanwhile, Strategy ramped up Bitcoin purchases, promoted its “21/21 Plan” to raise $42 billion for further digital asset accumulation, and projected a $10 billion BTC $ Gain for 2025. 

As late as February 2025, the company reiterated its optimistic outlook in its Q4 earnings release, with CFO Andrew Kang touting the accounting shift as a transformation of financial reporting. 

The complaint argues that Strategy's leadership knew or should have known that its guidance obscured material risks. By failing to account for the market-sensitive implications of fair value accounting—especially while dramatically increasing Bitcoin exposure—investors contend that the company materially misrepresented its financial outlook. 

The Microstrategy lawsuit asserts that MicroStrategy violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing misleading statements that artificially inflated the company’s share price. Investors who purchased MicroStrategy stock during the Class Period may be entitled to recover losses resulting from the company’s alleged misrepresentations. 

The Truth Emerges 

On April 7, 2025, the company disclosed a $5.91 billion unrealized loss on its Bitcoin assets—its first quarter reporting under the new standard. The stock fell over 8%, and analysts pointed to the disconnect between prior disclosures and the actual impact of the accounting change. 

Market Reaction 

Investors reacted negatively to this news.  Microstrategy’s stock price plunged 8.67% on the day these disclosures occurred.  

 Next Steps  

• Submissions for lead plaintiff are due July 15, 2025 

• The Court will issue its order for lead plaintiff and counsel in the weeks after submissions are due.    

• The Court will then consider motion for class certification.     

• The Court will later consider a Motion to Dismiss.    

To learn if you are eligible for recovery under the Microstrategy, Inc. securities class action lawsuit, visit the case submission page here. 

Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.