Michael Saylor and his company have been sued by an investor claiming that they misled about the profitability of their Bitcoin treasury strategy. The lawsuit was filed in the U.S. District Court for the Eastern District of Virginia. The investor, Anas Hamza, alleges that Saylor and executives did not disclose the serious losses involving fair-value accounting for their Bitcoin assets, leading to inflated projections of profitability. This became evident when the company reported a significant loss of $4.2 billion, following a $5.91 billion drop in Bitcoin's value. The complaint highlights the false assurances given about the company's financial health before the losses were disclosed. The firm has publicly stated its commitment to vigorously defend against the claims but indicated uncertainty about the potential costs of the legal battle. Saylor's company has accumulated around 576,000 Bitcoins, valued at approximately $60.6 billion, and had shifted to tracking these at fair value in early April, contrasting with previous accounting practices that only recognized declines when the assets were sold.

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