MicroStrategy Incorporated d/b/a Strategy (NASDAQ: MSTR)

This lawsuit is for anyone who acquired securities in MicroStrategy Incorporated d/b/a Strategy (NASDAQ: MSTR) from April 30, 2024 through April 4, 2025.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by failing to timely inform investors that the Company would sustain a huge expense for the unrealized loss on its bitcoin investments when it switched to a new accounting standard.

On April 7, 2025, Strategy disclosed that, following its adoption of Accounting Standards Update No. 2023-08 (“ASU 2023-08”), which requires publicly traded companies to measure their crypto assets at fair value in their financial statements, it recognized a $5.91 billion unrealized loss on its digital assets for the first quarter 2025. The Company warned that it “may not be able to regain profitability in future periods, particularly if [it] incur[s] significant unrealized losses related to [its] digital assets.” On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on May 1, 2025, Strategy released its first quarter 2025 financial results, confirming that it had recorded an unrealized fair value loss on digital assets of approximately $5.9 billion due to applying a fair value accounting methodology to Strategy’s bitcoin assets following bitcoin’s depreciation in value during the first quarter of 2025. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in MicroStrategy Incorporated d/b/a Strategy (NASDAQ: MSTR) from April 30, 2024 through April 4, 2025 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.