Investors withdraw the lawsuit against the strategy for bitcoin accounting practices star-news.press/wp

The proposed collective lawsuit against the strategy that accused the business intelligence company and its CEO, Michael Celor, has been rejected by the misleading of investors about the risks of major bitcoin purchases, voluntarily by the prosecutors, according to Bloomberg.

According to Bloomberg a report On August 29, investors voluntarily rejected the proposed collective lawsuit against strategy with bias, and permanently closed the case.

The lawsuit, which was filed by the law firm, Boumiranez LLP, in the American Provincial Court of the Eastern Region in Virginia, has appointed executives, including Michael Celor, CEO Fong -Lu, and financial manager Andrew Kang as accused.

Prosecutors have argued that the strategy is exaggerated in potential gains from their bitcoin strategy while reducing the risk of volatility and has clearly failed to reveal the effects of adopting new accounting standards for digital assets. The sudden decision of the plaintiffs to withdraw all the claims, which are submitted only one day on August 28, does not make any general explanation for their decline.

Accounting transformation and escalating criticism

Earlier this year, the strategy has adopted updating the accounting standards of the Financial Accounting Council No. 2023-08, which governs accounting for encryption assets. The shift to the company’s fair value accountability allowed the registration of huge bitcoin possessions in its market value each quarter, with the flow of unreasonable gains and losses directly in the clear income statement.

Prosecutors argued that the company failed to fully disclose how this affected its profits, noting the net strategy of $ 4.22 billion in the first quarter of 2025 as evidence that the accounting method was presented to investors in a misleading light.

In addition to the lawsuit, the strategy faced checking on other fronts. Earlier this month, a prominent consultant at Wall Street criticized the company to compare its evaluation measures with technology giants such as Apple and NVIDIA, on the pretext that her last performance was nourishing him once in bitcoin rather than the growth of sustainable revenues.

The reprimand emphasized the growing skepticism of parts of the financial institution on whether the unique strategy model should be measured against the peers of traditional companies at all.

Despite criticism, the strategy remains the largest carrier of companies in Bitcoin, with 632,457 BTC in its public budget, at a value of about $ 68.32 billion, according to Bitcointreasuries.net.

On August 25, Michael Celor highlighted that the company’s bitcoin returns scale increased to 25.4 % on an annual basis, and put it as evidence of the long -term shareholders’ value linked to bitcoin accumulation.