MicroStrategy's $765M Bitcoin Buy Amidst Lawsuit
MicroStrategy's Bitcoin Acquisition and Lawsuit
MicroStrategy, the leading corporate Bitcoin holder, recently purchased 7,390 BTC for approximately $765 million. This significant investment comes as the company faces a class-action lawsuit.
The purchase, announced on May 19th, saw an average price of just under $103,500 per Bitcoin. MicroStrategy reported a year-to-date Bitcoin yield of 16.3%. However, this positive news is overshadowed by a simultaneous SEC filing revealing a class-action lawsuit against the company.
The Lawsuit
The lawsuit alleges that MicroStrategy officials misrepresented the nature of Bitcoin investments and failed to adequately disclose associated risks. Specifically, the suit accuses executives of violating Section 10(b) of the Securities Exchange Act of 1934 and Section 20(a). The complaint claims false and misleading statements regarding the profitability of the company's Bitcoin strategy and the volatility risks involved.
As of May 18th, MicroStrategy held 576,230 BTC, acquired at an average price of $69,726, representing a total cost of around $40.18 billion. At current prices, these holdings are valued at over $59.2 billion, resulting in an unrealized gain of $19.2 billion (47%).
Growing Corporate Bitcoin Adoption
MicroStrategy's Bitcoin treasury strategy continues to influence other companies. For example, Top Win (now AsiaStrategy) saw its stock surge over 60% after announcing its own Bitcoin accumulation plan, partnering with Sora Ventures. AsiaStrategy's move follows Metaplanet's accumulation of Bitcoin holdings exceeding even El Salvador's reserves. Furthermore, a Bahrain-based catering company also adopted a Bitcoin treasury strategy, collaborating with 10X Capital.
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