Overview

A class action lawsuit has been filed against MicroStrategy Incorporated d/b/a Strategy (“Strategy” or the “Company”) and certain of the Company’s current senior executive officers alleging violations of the federal securities laws. Strategy’s Class A common stock, 8.00% Series A Perpetual Strike Preferred Stock, and 10.00% Series A Perpetual Strife Preferred Stock trade in an efficient market on the Nasdaq Global Select Market (“NASDAQ”) under the ticker symbols “MSTR,” “STRK,” and “STRF,” respectively.

The Strategy class action lawsuit was brought on behalf of all persons and entities who purchased or otherwise acquired Strategy securities between April 30, 2024, and April 4, 2025, both dates inclusive (the “Class Period”).

Strategy, together with its subsidiaries, provides enterprise analytics software and services purportedly powered by artificial intelligence (“AI”). Since 2020, the Company has increasingly focused on purchasing and holding bitcoin, a type of crypto currency, as a long-term business strategy. In October 2023, this strategy became so central to the Company’s operations that it began referring to itself as a “Bitcoin Treasury Company” that primarily uses proceeds from equity and debt financings, as well as cash flows from its operations, to accumulate bitcoin, which serves as its primary treasury reserve asset.

Defendants consistently touted Strategy’s bitcoin-focused investment strategy and treasury operations. The Company also introduced several new key performance indicators (“KPIs”)—namely, “BTC Yield,” “BTC Gain,” and “BTC $ Gain”— to measure its financial results. According to Defendants, these new KPIs would help the market assess the Company’s strategy of acquiring bitcoin in a manner accretive to shareholders.

On January 1, 2025, Strategy adopted the Financial Accounting Standards Board’s (“FASB”)2 Accounting Standards Update No. 2023-08, Intangibles—Goodwill and Other— Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets (“ASU 2023- 08”). ASU 2023-08 requires publicly traded companies to measure their crypto assets at fair value in their financial statements, with gains and losses from changes in the fair value of those assets recognized in net income in each reporting period. The FASB issued ASU 2023-08 to improve the way that companies account for their crypto assets and, accordingly, require them to provide a more accurate assessment of the fair value of those assets.

Prior to its adoption of ASU 2023-08, rather than employing a fair value accounting methodology, Strategy accounted for its bitcoin under a cost-less-impairment accounting model, whereby the Company classified its large bitcoin holdings as intangible assets. Under this accounting model, Strategy only needed to recognize impairments in the event of price depreciations and would not mark up for price increases unless the assets were sold.

The Strategy class action lawsuit alleges that throughout the class period, Defendants made materially false and misleading statements regarding Strategy’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the anticipated profitability of the Company’s bitcoin-focused investment strategy and treasury operations was overstated; (2) the various risks associated with bitcoin’s volatility and the magnitude of losses Strategy could recognize on the value of its digital assets following its adoption of ASU 2023-08 were understated; and (3) as a result, Defendants’ public statements were materially false and misleading at all relevant times.

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If you purchased or otherwise acquired Strategy securities between April 30, 2024, and April 4, 2025, both dates inclusive, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as lead plaintiff in the Strategy class action lawsuit is July 15, 2025.