Breaking: Strategy Announces $765 Million Bitcoin Purchase, Faces Class Action Lawsuit
Business intelligence firm Strategy has expanded its Bitcoin holdings with yet another purchase that was announced earlier today.
This time, the largest corporate holder of the leading cryptocurrency purchased an additional $765 million worth of BTC.
The company now holds a total of 576,240 coins, with its average buying price now approaching the $70,000 mark.
A magnet for short-sellers
In the meantime, the list of detractors of Strategy co-founder Michael Saylor continues to grow. As reported by U.Today, famous short-seller Jim Chanos, who is mostly known for warning about Enron on the verge of the company's implosion in the early 2000s, recently placed a bet against Strategy while simultaneously buying Bitcoin as a hedge.
In turn, Saylor took to social media to warn short-sellers not to bet against him on Sunday.
"Never short a man who buys orange ink by the barrel," he said, referencing an old Wall Street adage with a Bitcoin spin.
A class action lawsuit
The company's most recent regulatory filing also reveals that it is facing a class action lawsuit over allegedly misleading statements on the Bitcoin strategy.
The lawsuit, which was filed by a person named Anas Hamza on May 16 in a Virginia federal court, is targeting the company, Sayor, as well as CEO Phong Le and CFO Andrew Kang. They are being accused of violating the securities laws.
Investors claim that the company chose to downplay the risks associated with the leading cryptocurrency, thus violating the securities laws.
The company says that it will be "vigorously" defending against the claims outlined in the lawsuit.
The shares of Strategy are down 2% in pre-market trading on the news.
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