Massive relief for MicroStrategy as troubling lawsuit ends

Aug. 28 brought a massive relief to Strategy (Nasdaq: MSTR) as investors who filed a class-action lawsuit against the leading Bitcoin treasury firm in May decided to drop it, Bloomberg reported.

As reported earlier, a plaintiff named Anas Hamza filed the suit against the company, earlier known as MicroStrategy, on May 16 for allegedly making misleading claims about its Bitcoin strategy.

Lawsuit against MicroStrategy

Here is what the suit alleged.

Since Jan. 1, 2025, MicroStrategy has adopted the Financial Accounting Standards Board's accounting standards or ASU 2023-08, which requires publicly listed firms to fairly report their crypto holdings in financial statements while factoring in both unrealized gains and losses.

As per the cost-less-impairment accounting model earlier used, the company wrote losses on the paper only when Bitcoin's price dipped below the acquisition price and similarly didn't write price hikes unless it sold Bitcoin.

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It means the company didn't post any dip in Bitcoin's price in its statements unless there was a sale.

The suit claimed that the company downplayed the risks of the new accounting model on financial statements.MicroStrategy co-founder Michael Saylor

However, the plaintiffs told the U.S. District Court for the Eastern District of Virginia that they have voluntarily dismissed their own claims "with prejudice," which means they won't be able to approach the court again with the same claims.

Largest Bitcoin treasury firm

Led by co-founder Michael Saylor, Strategy holds 632,457 Bitcoin as of now. The firm's stock was trading at $335.60 at press time, down 0.91% a day.

As per Kraken's price feed, Bitcoin was trading at $108,451.97 at the time of writing, down 3.3% a day.

This story was originally reported by TheStreet on Aug 29, 2025, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.

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