Strategy Stock Gains After $764M Bitcoin Buy, Despite Fresh Lawsuit Questioning BTC Strategy

Strategy (MSTR) shares were up 2.3% in midday trade on Monday after the company announced its latest Bitcoin (BTC) buy despite facing a fresh lawsuit. 

Strategy and its top executives, including co-founder Michael Saylor, are contending with a newly filed class action lawsuit that accuses the company of making misleading statements about the risks tied to its Bitcoin investment strategy.

According to a recent SEC filing, the lawsuit alleges that Strategy downplayed the volatility and potential losses of its aggressive cryptocurrency strategy. 

The complaint highlights a $5.9 billion unrealized loss recorded in the first quarter of 2025. That loss followed the implementation of new accounting rules requiring companies to mark the value of digital assets to market, rather than hold them at cost.

The disclosure came as the company revealed it had purchased an additional 7,390 Bitcoins between May 12 and May 18 at an average price of $103,498, totaling $764.9 million.

Strategy reported a year-to-date return of 16.3% on its Bitcoin position in 2025.

To help finance the latest purchase, the company sold 1.7 million MSTR Class A shares under its at-the-market (ATM) equity program, raising $705.7 million. As of May 18, it has $18.98 billion in remaining capacity under that program.

Strategy also raised $59.7 million through the sale of 621,555 STRK preferred shares via its separate Series A 8.00% perpetual preferred stock ATM program. Approximately $20.79 billion remains available under that offering.

The latest acquisition brings Strategy’s total Bitcoin holdings to 576,230. The firm has spent approximately $40.18 billion on Bitcoin at an average cost of $69,726 per coin, according to the SEC filing.

Bitcoin’s price was trading at around $104,700 during U.S. market hours on Monday after crossing $106,100 over the weekend. According to CoinGecko, the apex cryptocurrency’s price has fallen 0.6% over the last 24 hours.

Strategy’s stock has gained nearly 35% this year and more than 156% over the past 12 months. In comparison, Bitcoin’s gains in the last 12 months stand at 56.7%. 

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