Leading corporate holder of Bitcoin, Strategy, previously known as MicroStrategy has spent another $764.9 million on BTC, despite facing a class-action lawsuit. The company made the disclosure on Monday through a filing with the United States Securities and Exchange Commission (SEC).
More so, the lawsuit alleged that executives of the firm provided misleading representation of its Bitcoin acquisition policy. Strategy added that Pomerantz LLP filed the lawsuit in the US District Court for the Eastern District of Virginia.
As revealed, top executives like Michael Saylor, Phong Le, and Andrew Kang are all defendants in the lawsuit. The officials are facing trial for allegedly violating Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 10b-5 thereunder, and Section 20(a) of the Exchange Act.”
The complainant accused Strategy of misleading investors about the financial impact of new Bitcoin accounting regulations. The new law—ASU 2023-08 is a standard that mandates firms to publicize the market value of Bitcoin on their balance sheets.
Further, the lawsuit emphasized that Strategy refused to warn investors about the potential $5.91 billion fair-value loss under the new regulations. The plaintiff alleged that the company failed to present the true impact of the loss using fake metrics like “BTC Yield and BTC $ Gain”.
Insight to the latest BTC acquisition by Strategy
Amid the lawsuit, Strategy took another bold step in its BTC acquisition program, further solidifying its position as a leading institutional holder of the premier cryptocurrency. In its latest move, the company spent $764.9 million to add another 7,390 BTC to its holding.
As indicated, the firm made the purchase at an average price of $103,500. However, the executive chairman of Strategy, Michael Saylor hinted about the acquisition on Sunday through a post on his X page.
As of then, the company holds 576,230 BTC, spending $40.2 billion at an average price of $69,726 per Bitcoin. Considering the recent price rally of Bitcoin, Strategy’s total BTC holdings are worth $59.2 billion.
Consequently, the figure indicates an unrealized gain of 47% worth $19.2 billion. However, in the filing to the US SEC, Strategy reported a Bitcoin yield of 16.3% year-to-date.
According to Coinmarketcap, Bitcoin is currently trading at $104,532 reflecting a 22.29% increase in the last 30 days.
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