MicroStrategy (MSTR) stock declines despite adding 7,390 Bitcoin to its holdings, as investors react to mounting legal pressure from a class action lawsuit
Strategy Inc. (formerly MicroStrategy) has deepened its commitment to Bitcoin, snapping up 7,390 BTC for nearly $765 million between May 12 and May 18, 2025. This brings the firm’s total Bitcoin stash to 576,230 BTC, valued at more than $59 billion based on current market prices.
Despite making strong efforts to buy more Bitcoin and achieving a 16.3% return on its BTC investments this year, Strategy’s stock (MSTR) fell over 2% in pre-market trading. This drop reflects investor concern due to new legal issues.
Class Action Casts Shadow Over Strategy’s BTC Bet
On the same day the acquisition was announced, the company disclosed in an SEC filing that a class action lawsuit had been filed in the Eastern District of Virginia. The lawsuit targets Michael Saylor, the executive chairman, Phong Le, the CEO, and Andrew Kang, the CFO. It claims they misled investors about how profitable and risky Strategy’s Bitcoin-focused treasury strategy would be in the long term.
A complaint has been filed under the Securities Exchange Act, saying that the executives did not properly inform shareholders about the risks of Bitcoin’s price swings and the dangers of having too much investment in it. Strategy plans to strongly contest these claims.
MSTR Slides Despite Outperformance
MSTR has performed better than Bitcoin in 2025 so far, with a year-to-date gain of 38% compared to Bitcoin’s 8%. However, the recent drop in MSTR’s stock shows that the market is sensitive to changes in regulations and legal issues. The strong link between MSTR’s stock and Bitcoin’s price continues to cause short-term fluctuations.
