Who’s Suing Strategy and Why? Michael Saylor’s Firm Faces Lawsuit over Bitcoin Accounting

03 Jul, 2025

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Pooja Khardia is a seasoned crypto content writer with 6+ years of experience in writing, including in blockchain, cryptocurrency, DeFi, and digital finance reporting. In her adventure journey, she is currently working with CoinGape Media and leading their Trending Section. Here, she uses her expertise to deliver analytics, market insights, price predictions, and information on what’s trending in the crypto space, aiming to keep the crypto and web3 community updated with market trends and important insights. Known for a user-centric and straightforward writing style, Pooja is passionate about making crypto easy and accessible. Her writing blends market research with storytelling, helping readers stay ahead in a fast-paced industry. When not behind the keyboard, Pooja embraces her creative side through drawing and crafting. Connect with Pooja on LinkedIn or X.

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Who’s Suing Strategy and Why? Michael Saylor's Firm Faces Lawsuit over Bitcoin Accounting

Highlights

Strategy and CEO Michael Saylor are facing a class action lawsuit for allegedly misleading investors about Bitcoin risk and valuation.
The lawsuit is filed by Anas Hamza and represented by Pomerantz LLP.
Pomerantz invites investors who purchased shares between April 30, 2024, and April 4, 2025, to join the lawsuit.

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Strategy (formerly known as MicroStrategy) is facing legal scrutiny as someone has filed a class-action lawsuit against the firm. The lawsuit is lodged in Virginia’s Eastern District court and is based on Michael Saylor’s Bitcoin valuation and alleged misleading of investors.

Who is Suing Michael Saylor’s Strategy?

According to the Virginia District Court filing, Anas Hamza, individually and on behalf of others in similar condition, has filed a lawsuit against Strategy and its CEO, Michael Saylor, President Phong Le, and Andrew Kang. The plaintiff is represented by a New York law firm, Pomerantz LLP.

Pomerantz says the firm focused entirely on its positive results, such as BTC Yield and gains, but never disclosed any real dangers to investors, misleading them. Saylor is a Bitcoin advocate and has led the firm to adopt BTC as a treasury reserve asset.

With this perspective, Saylor’s firm now holds 597,325 BTC, equivalent to $64 billion. Its share price has grown by more than 3000% in 5 years and by 204% in 2024. More importantly, many other corporations and institutions have begun following these strategies.

Additionally, Saylor has also become one of the most treasured personalities in the crypto space and is loved by all. However, the same following has brought them a lawsuit at their door.

Strategy Lawsuit: Why It’s Getting Sued?

The plaintiff alleges that the company misled them by overstating the profitability of their investment in the digital asset. More importantly, they concealed key risks, including volatility and accounting impacts.

Additionally, the filings highlight the firm’s newly adopted FASB accounting standard (ASU 2023-08), which requires fair value accounting for crypto assets. Under this model, they should have disclosed a $5.9 billion unrealized loss in Q1 2025, which they allegedly did not disclose. When they finally disclosed, its stock price dropped 8.67%, impacting investors.

Pomerantz claims that the firm failed to disclose the impact of new accounting standards and downplayed risk to investors.

Key Dates on Strategy Lawsuit and Jurisdiction

The plaintiff has filed a complaint against the firm and the CEO in the Eastern District Court of Virginia, covering investors who bought shares between April 30, 2024, and April 4, 2025. Their main allegations are around Strategy’s promotion of Bitcoin gains, but downplayed risks, like:

Bitcoin price volatility
Impacts of new accounting rules
Large size unrealized loss

Pomerantz has announced that other affected investors can also join the class action suit until July 15.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

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Frequently Asked Questions (FAQs)

1. What are the main allegations in the class-action lawsuit against Staretgy?

The lawsuit claims that Strategy and Saylor misled investors by overstating the profitability of their Bitcoin investment and downplaying the risks.

2. Who can join the lawsuit?

Investors who purchased Strategy shares between April 30, 2024, and April 4, 2025, are eligible to join the lawsuit.

3. What’s the last date to join?

Affected investors have until July 15 to join the lawsuit.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.