You Won’t Believe Why Bitcoin Investors Just Threw in the Towel!

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Well, hold onto your hats and monocles, dear reader, for the saga of Strategy Inc., the Bitcoin treasury outfit that’s been dancing on the razor’s edge of accounting regulations, has taken a turn more unexpected than Jeeves’ spot-on crisis management. The investors who once fancied themselves as crusaders against corporate obfuscation have-how shall we say?-decided to pack up their legal knapsacks and amble off without so much as a courtroom hurrah. 🎩💼

The Case Against Strategy

According to the ever-reliable Bitcoinist, one Mr. Anas Hamza and his merry band of plaintiffs marched into the US District Court for the Eastern District of Virginia brandishing accusations that Strategy Inc., together with its illustrious co-founder Michael J. Saylor, CEO Phong Le, and CFO Andrew Kang, were about as clear as mud when it came to the financial perils of shoveling bitcoin into their coffers. The chaps from Pomerantz LLP pegged their complaint on a stew of federal securities laws, Sections 10(b) and 20(a), with Rule 10b-5 thrown in to spice things up, alleging that our crypto champions played down the risks and cloaked the truth on profits, as one might hide one’s last cigar from a prying nosy parker. 🚬🤫

And if that wasn’t enough to get the blood pumping, there was the little matter of Accounting Standards Update (ASU) No. 2023-08, which, like an officious butler, demands firms show their crypto coins at fair market value with no funny business. The plaintiffs grumbled that these disclosures were about as transparent as a blindfolded bat, and that the execs kept mum about how this change might wrinkle the financial fabric.

Plaintiffs Voluntarily Dismiss Claims

But ah, plot twist! Just when you thought the legal gauntlet would be thrown down with the pomp of a regimental parade, the lead plaintiffs and one bold shareholder pulled an about-face worthy of Jeeves himself, voluntarily dismissing the claims in a grand accord, Bloomberg Law tells us. What’s more, this dismissal is “with prejudice,” which in legal-speak means the plaintiffs can’t stage a sequel. 🏳️✨

The suit, which covered a chapter in the annals of time from April 30, 2024, to April 4, 2025, had sought unknown treasures in damages and legal fees, but instead, it simply found the exit stage left, sans trial or settlement. Strategy, ever confident, vowed to defend itself with the verve of a bull terrier guarding its favourite spot by the fireside, insisting their Bitcoin risk disclosures and accounting were as bona fide as Jeeves’ tailor bills.

With the legal storm abated, Strategy sidesteps what might have been a protracted battle of wits. Meanwhile, they’ve recently added a fresh batch of bitcoins to their hoard, courtesy of a $359 million stock sale, snatching up 3,081 shiny new coins. 🪙💰

At the time of scratching these words down, Strategy sits upon a throne of 632,457 bitcoins, worth a princely sum of around $68.5 billion. Meanwhile, their proxy, MSTR, was doing a limbo dance downwards by 4.43% and 10.23% over the last one and five days respectively-perhaps from exhaustion or the excitement of all this fuss.

Bitcoin holdings graph

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2025-08-30 16:24