Strategy, formerly MicroStrategy, and the top corporate Bitcoin holder, acquired nearly $765 million of Bitcoin last week. The purchase comes as the company faces a class-action lawsuit.<\/p>\n
According to a May 19 announcement<\/a>, Strategy acquired 7,390 BTC for about $764.9 million at an average price just under $103,500. Strategy reported a Bitcoin yield of 16.3% year-to-date. Strategy executive chairman Michael Saylor made his usual hint at the purchase in a May 18 X\u00a0post<\/a>. <\/p>\n Source: <\/em>Michael Saylor<\/em><\/a><\/p>\n According<\/a> to a May 19 filing with the US Securities and Exchange Commission (SEC) filing, the firm was also just hit with a class action lawsuit. The suit accuses Strategy officials of having failed to represent the nature of Bitcoin investments accurately.<\/p>\n As of May 18, Strategy holds 576,230 BTC acquired for around $40.18 billion at an average price of $69,726 per coin. At current prices, the company\u2019s total holdings are valued at more than $59.2 billion, representing an unrealized gain of $19.2 billion, or 47%.<\/p>\n According to CoinMarketCap data<\/a>, Bitcoin traded at around $102,615 at the time of writing, up 20.3% over the last month.<\/p>\n Bitcoin’s price chart. Source: <\/em>CoinMarketCap<\/em><\/a><\/p>\n Related:\u00a0<\/strong><\/em>Jim Chanos takes opposing bets on Bitcoin and Strategy<\/strong><\/em><\/a><\/p>\n In a recent SEC filing, the firm wrote that \u201ca purported class action lawsuit was filed in the US District Court for the Eastern District of Virginia against\u201d the company\u2019s executives. Strategy chairman Michael Saylor, president and CEO Phong Le and executive vice president and chief financial officer Andrew Kang are all defendants in the suit.<\/p>\n Strategy officials are accused of \u201cviolations of Section 10(b) of the Securities Exchange Act of 1934, as amended (the \u201cExchange Act\u201d), and Rule 10b-5 thereunder, and Section 20(a) of the Exchange Act.\u201d The filing states:<\/p>\n \u201cThe [suit claims] that the named defendants made false and\/or misleading statements with respect to and\/or failed to disclose information with respect to the anticipated profitability of our Bitcoin-focused investment strategy and treasury operations, and the various risks associated with bitcoin\u2019s volatility.\u201c<\/p>\n 0xngmi, pseudonymous developer at decentralized finance data platform DeFiLlama, wrote in a May 19 X post<\/a> that he believes the lawsuit to have no basis. He explained that the suit \u201cseems to be people complaining that [Strategy] understated how much money it could lose if BTC went down.\u201d Still, he argued that the risks were not understated:<\/p>\n \u201cYou\u2019re buying a company that is self-labelled as \u201cleverage on Bitcoin,\u201d what do you expect?\u201dSource: <\/em>0xngmi<\/em><\/a><\/p>\n Related:\u00a0<\/strong><\/em>Strategy will beat all public equities with Bitcoin, analyst says<\/strong><\/em><\/a><\/p>\n Strategy\u2019s Bitcoin treasury strategy has inspired multiple other companies to follow in its footsteps. Last week, shares of luxury watchmaker Top Win surged more than 60% in premarket <\/a>trading after the company said it would adopt a Bitcoin accumulation strategy and had changed its name to AsiaStrategy.<\/p>\n AsiaStrategy said it is partnering with Sora Ventures to implement its plan, which previously partnered with Metaplanet in 2024 to create Japan\u2019s first corporate Bitcoin treasury. Metaplanet now holds more Bitcoin than El Salvador<\/a>. Also last week, a Bahrain-based listed catering company with a $24.2 million market cap\u00a0adopted a Bitcoin treasury strategy<\/a>\u00a0in partnership with investment firm 10X Capital.<\/p>\nStrategy hit with a lawsuit<\/h2>\n
Corporate Bitcoin treasury trend grows<\/h2>\n