Catenaa, Tuesday, September 02, 2025-Investors in Strategy, the Bitcoin treasury company co-founded by Michael Saylor, have voluntarily dismissed their class action lawsuit, which alleged the firm misled shareholders about its investment strategy and adoption of new accounting standards.
The case, filed in May by New York-based law firm Pomerantz LLP in the Eastern District of Virginia, named Saylor, CEO Phong Le, and CFO Andrew Kang as defendants.
The suit claimed Strategy overstated profitability and downplayed volatility risks tied to its Bitcoin holdings, and failed to fully disclose the impact of adopting Financial Accounting Standards Board rules requiring fair value accounting for crypto assets.
Pomerantz had invited additional investors to join the case, asserting that Strategy misrepresented both the scope and effect of these accounting changes on its financial statements.
As of Monday, Strategy holds approximately $68.5 billion in Bitcoin, with its shares rising more than 150% over the past year, according to The Block’s MSTR price page. The dismissal ends the legal proceedings without any admission of wrongdoing from the company or its executives.
The decision comes amid a broader trend of high-profile Bitcoin treasury firms facing investor scrutiny and legal challenges over transparency and reporting practices, though Strategy has consistently emphasized its long-term holding strategy and risk disclosures.
Strategy maintains that its public filings accurately reflect its investment operations and that shareholder value has grown alongside Bitcoin’s performance over the past year.
