Press release
Lawsuit filed for Investors who lost money with shares of MicroStrategy Incorporated (NASDAQ: STRK)
A lawsuit was filed on behalf of investors in MicroStrategy Incorporated (NASDAQ: STRK) shares.
Investors who purchased shares of MicroStrategy Incorporated (NASDAQ: STRK) have certain options and for certain investors are short and strict deadlines running. Deadline: July 15, 2025. NASDAQ: STRK investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
Tyson Corner, VA based MicroStrategy Incorporated, together with its subsidiaries, provides artificial intelligence-powered enterprise analytics software and services in the United States, Europe, the Middle East, Africa, and internationally.
Since 2020, MicroStrategy Incorporated 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.
MicroStrategy Incorporated (NASDAQ: STRK) reported that its annual Total Revenue declined from $496.26 million in 2023 to $463.45 million in 2024, and that its Net Income of $429.12 milion in 2023 turned to a Net Loss of over $1.16 billion in 2024.
On January 1, 2025, MicroStrategy Incorporated adopted the Financial Accounting Standards Board's ("FASB") 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, MicroStrategy Incorporated 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.
On April 7, 2025, MicroStrategy Incorporated disclosed in a filing with the United States Securities and Exchange Commission that, following its adoption of ASU 2023-08, it recognized a $5.91 billion unrealized loss on its digital assets for the first quarter of 2025, which was expected to result in a net loss for the quarter. As a result, Strategy warned investors that "[w]e may not be able to regain profitability in future periods, particularly if we incur significant unrealized losses related to our digital assets."
Then, on May 1, 2025, MicroStrategy Incorporated announced its financial results for the first quarter of 2025. Therein, the Company confirmed that it had recorded an unrealized fair value loss on digital assets of approximately $5.9 billion during the quarter. On a subsequent earnings call to discuss these results, Company management explained that this loss stemmed from applying a fair value accounting methodology to Strategy's bitcoin assets following bitcoin's steep depreciation in value in the first quarter of 2025.
Shares of MicroStrategy Incorporated (NASDAQ: STRK) declined from $100.25 per share on February 19, 2025, to $79.40 per share on April 09, 2025.
The plaintiff claims that between April 30, 2024 and April 4, 2025, the Defendants made false and/or misleading statements and/or failed to disclose that the anticipated profitability of the Company's bitcoin-focused investment strategy and treasury operations was overstated, that 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 that as a result, Defendants' public statements were materially false and misleading at all relevant times.
Those who purchased shares of MicroStrategy Incorporated (NASDAQ: STRK) have certain options and should contact the Shareholders Foundation.
Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com
About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
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