Strategy is facing multiple lawsuits, accusing it of securities fraud in Bitcoin treasury management.

BlockBeats News, June 27th, according to Decrypt, Strategy is facing at least five lawsuits alleging the company engaged in securities fraud in its Bitcoin treasury management, but two legal professors told Decrypt that this type of litigation is not uncommon. They noted that law firms typically vie for lead plaintiff status in class action lawsuits, allowing them to increase their potential payout from the case. In these types of cases, law firms often file separate lawsuits until a judge appoints a lead plaintiff and consolidates the individual suits.

The lawsuits allege that Strategy misled investors' expectations of Bitcoin's profit potential and risk assessment through the release of "materially false and misleading" public statements. The litigation stems from Strategy's purchase of $7.7 billion worth of Bitcoin in the first quarter, resulting in an unrealized loss of $6 billion due to price decline.