Strategy Bitcoin Lawsuit Dismissed as Investors Withdraw Claims

TLDR

• Investors have voluntarily dropped a class action lawsuit against Bitcoin firm Strategy.

• The lawsuit alleged misleading claims about Bitcoin investments and accounting standards.

• Strategy holds approximately $68.5 billion in Bitcoin after the dismissal.

• The dismissal with prejudice means the case cannot be refilled in court.

The class action lawsuit against Strategy Bitcoin, a prominent Bitcoin treasury firm, has been voluntarily dismissed by investors. The plaintiffs, including lead investors Michelle Clarity and Mehmet Cihan Unlusoy, had initially filed a lawsuit alleging that the company misled them about its Bitcoin investment strategy. This decision effectively ends the legal case, with the court agreeing to the dismissal with prejudice, meaning the case cannot be refilled.

The legal dispute focused on claims that Strategy overestimated the profitability of its Bitcoin investments while downplaying associated risks, including volatility in the cryptocurrency market. The case was filed in May 2025 by a New York-based law firm, Pomerantz LLP, in the Eastern District Court of Virginia. However, the investors have now chosen to withdraw their claims, signaling a conclusion to the case.

Allegations of Misleading Statements and Accounting Issues

The class action lawsuit accused Strategy of making false and misleading statements regarding the profitability of its Bitcoin investments. Investors claimed that the company failed to properly disclose the risks involved in its Bitcoin treasury operations.

The plaintiffs argued that Strategy’s leadership, including co-founder Michael Saylor and CEO Phong Le, exaggerated the stability and growth potential of their Bitcoin holdings.

Additionally, the lawsuit took issue with the adoption of the Financial Accounting Standards Board’s (FASB) new accounting rules for crypto assets. The plaintiffs alleged that Strategy did not adequately disclose the full impact of these new standards on the company’s financial statements. This lack of transparency regarding accounting practices was a significant point of contention in the case.

The Dismissal: What It Means for Strategy

The dismissal of the lawsuit with prejudice means that the plaintiffs will not be able to file the case again in any court. As Brandon Ferrick, general counsel for Duoro Labs, explained, the ruling ensures that the case is permanently closed, and the plaintiffs cannot seek to amend the complaint or refile the suit.

For Strategy Bitcoin, the dismissal represents a legal victory, clearing the company of the accusations made in the lawsuit.

The firm, which holds approximately $68.5 billion worth of Bitcoin, continues to operate its treasury business and has seen significant growth. Despite the legal challenges, the company’s stock has surged by over 150% in the past year, reflecting investor confidence in its Bitcoin accumulation strategy.

Bitcoin’s Role in Strategy’s Operations

Strategy Bitcoin’s approach to acquiring and holding Bitcoin has been central to its business model. Since it began accumulating Bitcoin in August 2020, the firm has positioned itself as one of the largest corporate holders of Bitcoin globally.

According to BitcoinTreasuries.NET, Strategy currently holds around 632,457 BTC, which is worth $68.4 billion at current market prices.

The company’s strategy of holding Bitcoin on its balance sheet has attracted both praise and scrutiny. While many see it as a way to diversify assets and hedge against inflation, others argue that the volatility of Bitcoin presents significant risks. However, Strategy’s ongoing growth and the dismissal of the lawsuit suggest that the company remains on track to continue its Bitcoin accumulation strategy, aiming to become a major player in the crypto treasury space.

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