Strategy, led by Michael Saylor, is facing a lawsuit for allegedly hiding Bitcoin risks and misleading investors.
The lawsuit claims Strategy focused on gains and ignored significant Bitcoin-related risks such as price volatility and accounting rule changes.
Strategy, holding over 597,000 Bitcoins, is the largest corporate Bitcoin holder globally.
The lawsuit, filed by Pomerantz LLP, alleges that Strategy omitted crucial details needed for investors to understand the risks, with a focus on unrealized losses under new accounting rules.