Re: MicroStrategy Buys $250M in Bitcoin, Calling the Crypto ‘Superior to Cash’

Quote from: JayJuanGee on Today at 01:46:17 AM

Even though I believe that the Class Action lawsuit filed against Strategy last week is a big nothing burger, I am a little surprised no one has mentioned it.

Quote

According to the complaint, during the class period, defendants failed to disclose that: (i) the anticipated profitability of the Company's bitcoin-focused investment strategy and treasury operations was overstated; (ii) the various risks associated with bitcoin's volatility and the magnitude of losses Strategy could recognize on the value of its digital assets following its adoption of ASU 2023-08 were understated; and (iii) as a result, Defendants' public statements were materially false and misleading at all relevant times.

https://www.prnewswire.com/news-releases/mstr-shareholder-alert-robbins-llp-informs-investors-of-the-microstrategy-incorporated-dba-strategy-class-action-lawsuit-302459505.html

While there are many reasons to fill a class action lawsuit against corporations like Google for their abuse of monopoly, vague enforcement of "Community guidelines", opaque moderation decisions and so on, when it comes to Strategy, there are no legal grounds that I can think of to sue Michael Saylor for running a Bitcoin treasury company while not expecting volatility. Saylor has been repeating a million times that they work with volatility, and the people that are filling the lawsuit did probably unfortunately buy at the very top of the speculative mania where the options market had created a gamma squeeze. Those people are the same ones that bought Bitcoin at the top of a bubble, held all the way down and eventually capitulated locking in losses, then became Bitcoin haters, only to see Bitcoin 10x+ from there. Some people just cannot deal with volatility which is a must in Bitcoin and specially Strategy.