By LawInspectsIf you keep an eye on whatever is going on in the investment scene worldwide, especially the crypto market, then you must already know about Michael Saylor. Yup, it’s the same company behind Strategy (once called MicroStrategy). And if you know that, then you may already be familiar with how big of a name it is in the crypto scene on a global level, right? Anyways, recently, this Michael Saylor company has been going through a tough time because there is a BIG lawsuit filed against them, and yes, we’re referring to that famous Michael Saylor Lawsuit that is all over the headlines these days. Let’s get to the details of this case and understand it all in a much better way.
What Was Strategy Up To?
It was in 2020 that Saylor got Strategy to start buying Bitcoin in huge lots as a smart long-term investment. As of May 2025, they hold in excess of 576,000 Bitcoins, representing about 2.7% of all Bitcoin. That’s now worth in the region of $59 billion-based on present-day prices.
And they are not stopping at that, well, so far that seems to be the case. Like, Strategy is after a Bitcoin portfolio of $42 billion by 2027. To this end, company shares are being sold to raise cash, you know, in a way, so more Bitcoins can be bought. But some think that this affair got sloppy somewhere in between, and that’s when all this chaos happened.
What’s the Michael Saylor Lawsuit About?
Oh, if you weren’t unfamiliar with any of these details, we can go over them one by one. First, on the one hand, you have to know that a lawsuit was filed on May 16, 2025, in a Virginia court by Anas Hamza, an investor out of California. Now, for all the Michael Saylor Lawsuit details that have already been disclosed to the public so far, as per those details there is an allegation that Strategy, Saylor, and the other senior officers, including the CEO Phong Le and CFO Andrew Kang, did not make a full risk disclosure of having to hold considerable Bitcoin to the investors. And sure enough, that was the thing that led to the chain reaction and all this chaos happened, and this resulted in this major lawsuit that is going viral these days.
What Really Went Down (Wrong) In This Case?
In early 2025, Strategy actually went on to adopt fair value accounting for reporting Bitcoin values; it means recognizing quarterly gains or losses of Bitcoin based on market prices. When Bitcoin went down in Q1 2025, Strategy recorded a loss of $4.22 billion. They had warned about a possible drop of $5.91 billion, which brought a 9% stock decline in one day from the news.
Sure enough, when people got to know about this, many were on the fence, so to speak. The main part of this lawsuit is whether Strategy clearly communicated to the investors before taking any such actions or not. That’s all!
Here’s Precisely How Strategy’s Responding So Far
Just like any big company comes out after any such big lawsuit or complaint against them, well, Strategy has also responded that they’re in the right here and will fight back against this lawsuit. Like, they have informed the regulators that it is difficult to theorize what might be the final hold of this litigation or how much it might cost.
In the crypto scene all around the globe, well, in a way, opinions are divided. Some believe that the litigation has some merit and may possibly lead to new rules. But others are kinda loyal to this company and saying that this is just noise and nothing else.
Do You Think It Is All About Strategy? Nah!
You have to think beyond this company actually, it is much more than that. Like, if you think that, here’s another perspective on that. You see, they were the first big company that went totally all-in on Bitcoin, and others followed, after which is how it works in real life. But the thing is, experts estimate the figure companies could pour into Bitcoin by 2029 to be $330 billion. That’s a mind-boggling number right there.
New Accounting Rules, New Problems
The FASB (Financial Accounting Standards Board) in 2023 gave the thumbs up to fair-value accounting for cryptos. Strategy liked this because it says this practice provides transparency to the investors about their finances. On the other hand, the same procedure also forces them to report huge losses in Bitcoin after each price drop, regardless of whether the Bitcoins are actually sold or not.