Class Action Lawsuit Against MicroStrategy | What Happens to Their Bitcoin?
In a Nutshell
MicroStrategy faces a class action lawsuit as its stock crashed 81% from highs while Bitcoin hit new records, exposing the risks of leveraged Bitcoin exposure through dilution and poor business performance. STRC products promised 11.5% yields and $100 stability but trade at $80, highlighting broken promises to investors. Key takeaways: avoid leverage on speculative assets like Bitcoin, take profits systematically, and recognize that MicroStrategy amplifies Bitcoin's downside without delivering the upside.
These notes were generated by AI and may contain inaccuracies.
A class action lawsuit has been opened against MicroStrategy and Michael Saylor. Rosson Law Firm is encouraging investors who purchased MSTR, STRF, STRC, STRK, and STRDM to inquire about the securities class action lawsuit investigation.
MicroStrategy stock broke below $100 per share. One insider, MicroStrategy director Jared Patton, sold 1,500 shares of common stock for $159,000 at an average price of $106 per share. In the past 45 days, MicroStrategy declined 51% over 44 days. From previous all-time highs of $543, the stock has fallen to current lows of $94, representing an 81% decline.
Michael Saylor runs a failing software business. MicroStrategy generates approximately $400 million in revenue but still loses money when examining actual balance sheet expenses. STRC is supposed to trade at $100 per share but is trading at $80, representing a 20% decline. Michael Saylor promised investors an 11.5% APY and that STRC would close and stay at $100.
MicroStrategy investors are defending the stock by calling the decline a Bitcoin winter or crypto winter, occurring during one of the most bullish markets for the stock market. The speaker notes being down 50% when the NASDAQ market is up 50%, representing missed opportunity cost.
MicroStrategy has not made new highs since 2024, while Bitcoin has made new all-time highs multiple times in 2025. The speaker argues that MicroStrategy represents leveraged exposure to Bitcoin in a bad way, with greater downside than Bitcoin itself due to dilution.
The speaker states they are not pro-Bitcoin but believe in the right to invest in it. Concerns include Jeffrey Epstein's alleged funding of Bitcoin, its original use in black markets, and lack of implementation as functional technology. Bitcoin has been in existence for over 15 years with no progress in technology implementation despite a pro-Bitcoin president.
Bitcoin is described as a tradable speculative asset rather than an income-producing asset or business. If you own 100% of Bitcoin, you have code. If you own 100% of Micron Technologies, you have a company generating $20 billion in profit annually. Bitcoin is compared to gold as a store of value, but the speaker cites a quote that Bitcoin is not the store of value but the story of value, and the story is fiction.
Two main pieces of advice are shared: know when to take profits and do not use leverage with speculative assets. Having a plan with take-profit, stop-loss, and exit strategies is recommended. If owning $1,000 of a speculative asset that sells off 50-60%, there is no margin call risk compared to leveraged positions.
Bitcoin broke below $60,000 and MicroStrategy broke below $100. During the biggest bull run, crypto is down. Economic reports scheduled for the next day at 8:30 a.m. Eastern time include the PCE report, GDP report, initial claims, and continuing claims. The speaker questions whether markets can sustain elevated levels after these reports.
A promo code MSTR is offered for nearly 50% off to celebrate the MicroStrategy and Bitcoin selloff. The service provides one-time payment lifetime access for watching live trading daily.
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