Michael Saylor has hinted that MicroStrategy, now known as Strategy, may buy more Bitcoin despite the company facing lawsuits over its $5.9 billion first-quarter loss from its Bitcoin holdings.
On Sunday, Saylor shared a chart on X showing Strategy’s past Bitcoin purchases with the caption: “Nothing Stops This Orange.” Previously, similar posts from Saylor preceded new Bitcoin acquisitions by the company. Strategy holds the largest Bitcoin reserves among public companies, with 592,100 BTC valued at about $59.7 billion, as Bitcoin trades just below $101,000.
The hint comes amid legal challenges after an investor sued Strategy, Saylor, and other executives last Thursday, alleging breaches of fiduciary duty related to the Bitcoin loss reported in Q1 results.
The shareholder derivative complaint, filed by Abhey Parmar in a Virginia federal court, accuses Saylor, CEO Phong Le, CFO Andrew Kang, and four board directors of making materially false and misleading statements about an accounting change. The change, based on a new Financial Accounting Standards Board (FASB) rule effective in December, allowed crypto holders to reflect estimated market value on balance sheets.
The suit claims this accounting adjustment led to recording a $5.9 billion unrealized Bitcoin loss in early April, triggering a nearly 9% drop in MicroStrategy’s stock price. Despite this, shares have risen about 28% year-to-date after recovering from a low near $238 in early April.
According to the complaint, Strategy’s executives did not fully disclose the accounting change’s potential impact or Bitcoin’s heightened volatility risks. It also asserts the company’s profitability from its Bitcoin strategy was overstated.
Additionally, Parmar alleges that executives sold nearly $31.5 million in company stock while the share price was inflated before the accounting losses became public. The suit accuses them of mismanagement, abuse of control, and wasting corporate assets.
Strategy also faces a proposed class-action lawsuit from mid-May, with similar allegations regarding nondisclosure and risk downplaying linked to adopting the FASB crypto accounting rule.
In a regulatory filing, Strategy stated it would “vigorously defend against these claims.”