Michael Celor’s strategy struck the case after Bitcoin lost 5.9 billion dollars
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- An investor in California has accused the strategy and its executives of making wrong and misleading data about the profitability of the Bitcoin strategy for the Treasury.
- Quoting a decrease in the value of Bitcoin’s possessions, the strategy revealed a loss in the first quarter of $ 4.2 billion earlier this year.
- It is claimed that the strategy has failed to detect the scope of losses it can incur from the Bitcoin fair value accounting standard, while enhancing the “pink assessments” of the transformation.
A California headquartered investor accused the strategic, formerly MicrostrategyAnd its executives to violate federal securities by making wrong and misleading statements, according to a complaint filed at the American District Court of the Eastern Region in Virginia on Friday.
In the 38 -page document, Nas Hamza claimed that the strategy and its executives, including co -founder and CEO Michael Sailor, failed to reveal that “the expected profitability of the investment strategy that focuses on the bitcoin of the company was exaggerated.”
The complaint, which does not determine the damage, claimed that the Virginia -based company, which is based in the “Virgina -based”, to reveal “the size of the losses strategy, can recognize the value of its digital assets after its adoption of” fairly value -value accounting standards for Bitcoin, while promoting “pink assessments to perform the strategy such as Bitcoin” instead.
The lawsuit of Hamza, which is led by lawyers in Boumiranez, as well as the CEO of Strategy Company, Fong -Loo and Financial Director Andrew Kang as defendants.
In presenting the Securities and Stock Exchange Committee, the strategy He said On Monday, she plans to “defend strongly” against Hamza’s claims, adding that she cannot “predict the result, or make a reasonable estimate” for the costs related to the legal endeavor at this time.
The strategy did not immediately respond to a request to comment from Decipher.
The strategy began to store Bitcoin under the leadership of Celor in 2020, and it is currently about 576.00 bitcoins worth $ 60.6 billion, based on current prices. In January, I began to follow the fair value of Bitcoin, while reporting the gains and losses as a quarterly income.
Strategy to caution In early April, the first profitable quarter, citing a decrease of 5.91 billion dollars in the value of bitcoin holding, on paper during the three -month period. The company later Detected A loss in the first quarter of $ 4.22 billion, or $ 16.49 per share.
Under a different accounting model, which ranked Bitcoin Strategy’s possessions as an inappropriate asset, the company was only required to recognize twice if the price of the original decreased. Only if this Bitcoin strategy will sold, the company will mark “on” the value of its Bitcoin’s possessions.
The strategy decision is constantly highlighting the main performance indicators, including the BTC-which tracks changes in the ratio between Bitco Bitcoins and suspended shared shares-are among the methods made by the company and executives, by reducing the risk of shift to the fair value accounting standard.
The Financial Accounting Standards Council, or FASB, approved at the expense of the fair value that represents digital assets in 2023. letter “It will enable us to provide investors with a more related view of our financial situation and the economic value of our bitcoin passports.”
Pomraantz did not immediately respond to a request to comment from Decipher.
Edited by James Robin
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