Strategy buys 7,390 BTC for $765M, gets hit with class-action lawsuit

Strategy, formerly MicroStrategy, and the apical firm Bitcoin holder, acquired astir $765 cardinal of Bitcoin past week. The acquisition comes arsenic the institution faces a class-action lawsuit.

According to a May 19 announcement, Strategy acquired 7,390 BTC for astir $764.9 cardinal astatine an mean terms conscionable nether $103,500. Strategy reported a Bitcoin output of 16.3% year-to-date.

As of May 18, Strategy holds 576,230 BTC acquired for astir $40.18 cardinal astatine an mean terms of $69,726 per coin. At existent prices, the company’s full holdings are valued astatine much than $59.2 billion, representing an unrealized summation of $19.2 billion, oregon 47%.

According to CoinMarketCap data, Bitcoin traded astatine astir $102,615 astatine the clip of writing, up 20.3% implicit the past month.

Bitcoin's terms chart. Source: CoinMarketCap

Related: Jim Chanos takes opposing bets connected Bitcoin and Strategy

Strategy deed with a lawsuit

According to a May 19 filing with the US Securities and Exchange Commission, “a purported people enactment suit was filed successful the US District Court for the Eastern District of Virginia against” the company’s executives, including enforcement president Michael Saylor, its president and CEO Phong Le and enforcement vice president and main fiscal serviceman Andrew Kang.

Strategy officials are accused of “violations of Section 10(b) of the Securities Exchange Act of 1934, arsenic amended (the “Exchange Act”), and Rule 10b-5 thereunder, and Section 20(a) of the Exchange Act.” The filing states:

“The [suit claims] that the named defendants made mendacious and/or misleading statements with respect to and/or failed to disclose accusation with respect to the anticipated profitability of our Bitcoin-focused concern strategy and treasury operations, and the assorted risks associated with bitcoin’s volatility.“

Related: Strategy volition bushed each nationalist equities with Bitcoin, expert says

Strategy keeps inspiring others

Strategy’s Bitcoin treasury strategy has inspired aggregate different companies to travel successful its footsteps. Last week, shares of luxury watchmaker Top Win surged much than 60% successful premarket trading aft the institution said it would follow a Bitcoin accumulation strategy and had changed its sanction to AsiaStrategy.

AsiaStrategy said it is partnering with Sora Ventures to instrumentality its plan, the steadfast that notably partnered with Metaplanet successful 2024 to make Japan’s archetypal firm Bitcoin treasury. Also past week, a Bahrain-based listed catering institution with a $24.2 cardinal marketplace cap adopted a Bitcoin treasury strategy in concern with concern steadfast 10X Capital.

Magazine: Rise of MicroStrategy clones, Asia dominates crypto adoption: Asia Express 2024 review