Strategy, the biggest corporate holder of bitcoin led by Michael Saylor, is now facing a class action lawsuit that has been filed against the firm by Top New York-based law firm Pomerantz LLP., case accuses the company of hiding important facts and misleading investors about the profits and risks of its Bitcoin strategy.
The lawsuit, filed in Virginia’s Eastern District Court, claims that Strategy misled investors between April 30, 2024, and April 4, 2025. According to the law firm, Strategy gave the impression that its Bitcoin investments were highly profitable, while hiding key risks like price volatility and changes in accounting rules.
Pomerantz says both Strategy and its CEO, Michael Saylor, focused on positive results like BTC Yield and BTC Gain but didn’t talk about the real dangers, including the chance of major losses.
The lawsuit says the company left out important details that investors needed to fully understand the risks involved.
One big point in this case is the Strategy’s change to new crypto accounting rules known as ASU 2023-08. This new rule means companies must show the real-time value of their Bitcoin holdings, not just the cost minus past drops.
Earlier, Strategy only showed losses when Bitcoin fell in price, but did not show gains until coins were sold. Under the new rule, it became clear that Strategy faced an unrealized loss of $5.9 billion in early 2025.
However, this news caused the stock to fall over 8% in a short time, shocking many investors.
Strategy has been a major player in the crypto space since 2020 and holds over 597,000 Bitcoins worth around ($65.85 billion, more than any other public company.
Its stock has grown over 204% in the past 1 year, inspiring other firms like Metaplanet to follow its strategy. Despite recent gains, including a 7.7% rise to $402.28, this lawsuit puts Strategy under serious pressure.
With a July 15 deadline for investors to join the case, many are now asking: Was the Bitcoin boom too good to be true?
Yep, it absolutely is. Public company holdings more than doubled from 2024 — from 64 companies to 151. Firms are no longer experimenting — they’re going all in, especially after the U.S. government signaled policy support.
There’s frequent debate and sharing of lists about top holders like MicroStrategy (now Strategy Inc.), Marathon Digital, Tesla, and Galaxy Digital. Users track these companies’ quarterly filings and press releases to stay updated on their Bitcoin reserves.
In 2025, Satoshi Nakamoto remains the largest Bitcoin holder with approximately 1.1 million BTC. He is followed by major institutional players like BlackRock, holding around 662,000 BTC, and Binance with about 611,000 BTC. Other significant holders include Fidelity, Grayscale, Strategy Inc. (formerly MicroStrategy), and several national governments.
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