Listen, this one’s got drama written all over it. Michael Saylor is teasing a fresh Bitcoin buy.
Yeah, even while his company’s got a $5.9 billion loss hanging over its head like a dark cloud.
And guess what? Investors aren’t happy. They’ve slapped a lawsuit on him and his top execs, accusing them of playing fast and loose with the truth.
Against the flow?
Just last Sunday, Saylor dropped a cryptic post on X, showing a chart of Strategy’s past Bitcoin buys with the caption, “Nothing Stops This Orange.”
Now, if you’ve been watching this guy, you know these mysterious posts usually mean one thing. More Bitcoin is coming.
Maybe it’s not that cryptic at all. Strategy holds the crown as the world’s largest corporate Bitcoin hoarder, sitting on 592,100 BTC.
At today’s prices that stash is worth nearly $60 billion. That’s some serious digital gold.
But you know what? Days before Saylor’s tweet, shareholder Abhey Parmar filed a derivative lawsuit in a Virginia federal court.
The target? Saylor, CEO Phong Le, CFO Andrew Kang, and the board. The suit claims these guys breached their fiduciary duties and misled investors about a new accounting rule from the Financial Accounting Standards Board.
Controversies
This rule, which kicked in January, lets companies show the market value of their crypto holdings on their balance sheets.
Sounds fair, right? Well, not when Bitcoin’s price swings like a rollercoaster. Strategy had to report a $5.9 billion unrealized loss in Q1 because of this, sending their stock tumbling nearly 9%. Ouch.
The lawsuit accuses Strategy’s leadership of downplaying Bitcoin’s volatility and not being upfront about how the new accounting rule would hit their finances.
And get this, they’re also accused of insider trading, with execs allegedly selling $31.5 million worth of stock while shares were supposedly overvalued.
That’s like the boss selling off the family jewels before the house goes up in flames. Some say it’s kinda sus.
The show must go on
Strategy isn’t taking this lying down tho, in official filings, they vowed to “vigorously defend” themselves against these claims.
But the damage? It’s done. Investors are jittery, and the courtroom battle is just heating up.
We all know that Saylor’s still bullish on Bitcoin, flashing his orange flag high. But with lawsuits circling and billions lost on paper, this story is far from over.
