Cryptonews media FUD on Microstrategy's Bitcoin investment

[bbc.reporter]

It appears this is the beginning of the new season of our favorite tv show during bull markets. The title of this tv show is The Fud.

I reckon Michael Saylor should countersue and use the money he can get from the settlement to buy more bitcoin hehehe.



A class action lawsuit has recently been filed against Michael Saylor and his company Strategy regarding Bitcoin investments and related financial advice. At the time of writing, several investors have actually joined together to allege that they were, in fact, misled about cryptocurrency performance and potential returns. This lawsuit follows increased criticism of the digital currency and investment market.

Read in full https://watcher.guru/news/class-action-lawsuit-filed-against-michael-saylors-strategy-over-bitcoin

[headingnorth]

Suing because they didn't expect so much volatility? What the hell?
Newsflash: Bitcoin is highly volatile and that is what you are exposed to with MSTR.
Not just bitcoin but leveraged bitcoin which is even more volatile than regular bitcoin.
Did these idiots think they were investing in annuities or certificates of deposits?

This may be the dumbest lawsuit in the history of Wall Street.

[Darker45]

How about they adequately inform themselves first of that which they invest in? Can investors just put money into something they aren't familiar about and complain out of ignorance?

Anyway, let's wait how the court decides on this, but given the current administration's leaning on Bitcoin, this might be trashed. If they succeed, however, perhaps CEOs, bankers, hedge funds managers, wealth advisors, and the like should stop claiming what Bitcoin is: a hedge against fiat devaluation, a store of value, an intergenerational wealth, and so on.

[takuma sato]

Michael Saylor has been saying since a long time ago that MSTR is using Bitcoin's volatility to produce returns and create these new financial products like STRK and STRF, so I don't understand what those people expected. MSTR is leveraged Bitcoin, so if Bitcoin is something that has higher volatility than NASDAQ, then MSTR has higher volatility than BTC, and from here you can extrapolate and get ready for a rollercoaster, but people want the big gains without the big volatility, probably a lot of these people making the lawsuit bought at the peak of the euphoria. I wonder if they will still be complaining when MSTR goes $600+ on the next BTC run.

[nativebtc]

That's wild and unusual. People should know what's going on.

[Die_empty]

In my own view, they have no case. Michael Saylor, just like other business owners, discusses investment based on their understanding. Nobody was forced to take that financial advice. They are supposed to do their research before investing. I think this case is simply a smear campaign against this Bitcoin proponent due to his success in the industry.

These anti-Bitcoin forces lost the campaign associating Bitcoin with criminal transactions. They have also failed to convince the world that Bitcoin destroys the environment.  Maybe the next phase is to attack genuine corporate investors. They will still fail.

[Ruttoshi]

Michael Saylor has been saying since a long time ago that MSTR is using Bitcoin's volatility to produce returns and create these new financial products like STRK and STRF, so I don't understand what those people expected. MSTR is leveraged Bitcoin, so if Bitcoin is something that has higher volatility than NASDAQ, then MSTR has higher volatility than BTC, and from here you can extrapolate and get ready for a rollercoaster, but people want the big gains without the big volatility, probably a lot of these people making the lawsuit bought at the peak of the euphoria. I wonder if they will still be complaining when MSTR goes $600+ on the next BTC run.

Of course, maybe they invested out of FOMO when bitcoin was at $107 and bitcoin price hasn't recovered so they feel that they have invested into an asset that will make them run at loss. I will call that ignorance because how will you not start studying what you have invested your money into for proper knowledge and understanding.

Maybe, they thought bitcoin is a money doubler within a short period of time. MSTR should have a means to sensitize these investors giving him fundd to invest into bitcoin how it works so that they will be patient enough even in a price dip to avoid such crazy actions in future.

[DaveF]

It's not a class action lawsuit  it a purported class action lawsuit.

BIG DIFFERENCE.

It has not been formally certified by the court, meaning a class has not been officially recognized as a valid legal entity.

It can go forward or it can get quashed by a judge.

Should read, a lawsuit filed by someone who thinks they have a class action is trying to sue Strategy.

But, that does not make for a good clickbait headline.

-Dave

[headingnorth]

Michael Saylor is famous for saying the extreme volatility of bitcoin and MSTR "is a feature, not a bug." And "volatility is vitality."
He says that in all his speeches and interviews and he has done hundreds of them. So how has he ever mislead anyone?
i don't know how Saylor can make it any more clear that his company stock is highly volatile.

Since inception MSTR stock has outperformed the S&P500 by a large margin so I don't know what these jokers
are whining about? But even if Microstrategy stock price went to zero tomorrow they still have no case
because that is the risk you take with any investment.

What's next? Are they going to sue the MGM Grand in Las Vegas because they lost all their money on the roulette wheel?

[franky1]

the funny part is they are probably suing because the recent sub $100k dip few months ago happened, they cried like babies and reacted to sell at loss..
when they as idiots never expected dips..

however now suing, by the time they get to court the bitcoin price will be higher than they ever seen.. making them profits if they didnt panic and get emotional


advice to anyone
unless a portfolio manager is locking you into a contract deal that offers fixed %/$$ amount profit during a term.. take all 'advice' about 'potential' returns as suggestion, not fact
do your own research and find multiple sources and as much info as you can to make your own decisions of when to buy/sell
dont then sue people if your not in a performance contract with them

if you are in a performance contract of fixed profit guarantee.. and they dont pay up.. then yes sue

[BitHodlers]

A lawsuit that is not news worthy and will land in the trash bin. People really fall for anything these days. Your brain is better off not having read this article.

These anti-Bitcoin forces lost the campaign associating Bitcoin with criminal transactions. They have also failed to convince the world that Bitcoin destroys the environment.  Maybe the next phase is to attack genuine corporate investors. They will still fail.

At least that battle will be easier to win, as corporations tend to have a lot more money for organized legal defense or PR.

But, that does not make for a good clickbait headline.

If only we would finally ban clickbait headlines..

If they succeed, however, perhaps CEOs, bankers, hedge funds managers, wealth advisors, and the like should stop claiming what Bitcoin is: a hedge against fiat devaluation, a store of value, an intergenerational wealth, and so on.

Why would someone stop claiming what Bitcoin factually is? Facepalm.

[bbc.reporter]

the funny part is they are probably suing because the recent sub $100k dip few months ago happened, they cried like babies and reacted to sell at loss..
when they as idiots never expected dips..

however now suing, by the time they get to court the bitcoin price will be higher than they ever seen.. making them profits if they didnt panic and get emotional


advice to anyone
unless a portfolio manager is locking you into a contract deal that offers fixed %/$$ amount profit during a term.. take all 'advice' about 'potential' returns as suggestion, not fact
do your own research and find multiple sources and as much info as you can to make your own decisions of when to buy/sell
dont then sue people if your not in a performance contract with them

if you are in a performance contract of fixed profit guarantee.. and they dont pay up.. then yes sue

Agreed. What would be very funny is if Strategy can find a way to remove those complainers' investments immediately and give them the proper amount of their investment in the present market price and bitcoin pumps to $150k a week after they were given their money and $200k a month after hehehehehe.

This is a very similar occurrence on many retail investors in the cryptospace.

[john_egbert]

Michael Saylor is famous for saying the extreme volatility of bitcoin and MSTR "is a feature, not a bug." And "volatility is vitality."
He always says that in all his speeches and interviews and he has done hundreds of them. So how has he ever mislead anyone?
i don't know how Saylor can make it any more clear that his company stock is highly volatile.

Since inception MSTR stock has outperformed the S&P500 by a large margin so I don't know what these jokers
are whining about? But even if Microstrategy stock price went to zero tomorrow they still have no case
because that is the risk you take with any investment.

What's next? Are they going to sue MGM Grand casino in Las Vegas because they lost all their money on the roulette wheel?

Traditional entities like that cannot bear the volatility that much, usually, and it's a common fact about what you said and how much Sailor pointed it out too - yet we have cases like that, even though they are not in motion as it was said in the thread too, because there is nothing for the judge to judge for.. Yet

[BayAreaCoins]

The interesting thing about lawsuits (and what potentially sucks) is that it opens up "interrogatories and request".

Basically, some lawyers are going to start blasting your ass with a list of questions.

This would potentially shed some light on how, where, and what the Bitcoin addresses are for Strategy.

[bbc.reporter]

@BayAreaCoins. Your argument is correct on lawyers asking questions as an interrogation tactic. However despite this, I reckon this lawsuit will not reach anything that will give lawyers a chance to interrogate. There is more chance that this will be settled before the case begins.

I speculate that the complainants were only afraid for their investment. I reckon a small compensation might stop them from being afraid hehehehehe.

[thecodebear]

lol, the latest in a long history of dumbest lawsuits ever.

I guess this is why I always see people include the phrase "this is not financial advice", cuz some idiot will try to sue you if they make a bad move in the market with some asset someone mentioned lol

[Marvell1]

We need to know that lawsuits like this are very common in the United States, this is nothing new or alarming. This is just a civil lawsuit and the purpose is just to seek financial compensation, and I think it's more like an extortion case  .

Another thing we need to note is that what Strategy has done so far is legal, SEC or any legal authority has never issued any warning about Strategy. So these news has no meaning other than they want to spread Fud.

[fikrett]

lol, the latest in a long history of dumbest lawsuits ever.

I guess this is why I always see people include the phrase "this is not financial advice", cuz some idiot will try to sue you if they make a bad move in the market with some asset someone mentioned lol

Rightfully so.
Big guys are scared too easily. When BTC reaches a new ATH, they will see it and be like: "Damn, we were wrong, sorry"

[bbc.reporter]

It presently is very much certain that the cryptonews media is on another conspiracy to fud Michael Saylor and Microstrategy's investment in bitcoin. There are also people in social media who are beginning to compare this with GBTC which might be very headshaking.

However, what does everyone speculate? Will Microstrategy be something similar to GBTC?



Crypto stocks suffered a red day on Friday, especially bitcoin BTC $108,755.81  treasury companies such as Strategy (MSTR) and Semler Scientific (SMLR) — each down roughly 6% even as bitcoin slipped only a bit more than 2%. Japan-listed Metaplanet is lower by 24%.  The picture looks even worse when zooming out: changing hands at $376 early Friday afternoon, MSTR shares are more than 30% below their all-time high hit late in 2024 even as bitcoin has pumped to a new record this week.

The price action comes amid a continuing debate taking place on social media about the sustainability of Michael Saylor’s (and those copycatting him) bitcoin-vacuuming playbook.  “Bitcoin treasury companies are all the rage this week. MSTR, Metaplanet, Twenty One, Nakamoto,” said modestly well-followed bitcoin twitter poster lowstrife. “I think they're toxic leverage is the worst thing which has ever happened to bitcoin [and] what bitcoin stands for.”

The issue, according to lowstrife, is that the financial engineering that Strategy and other BTC treasury firms are employing to accumulate more bitcoin essentially rests on mNAV — a metric that compares a company’s valuation to its net asset value (in these cases, their bitcoin treasuries).  As long as their mNAV remains above 1.0, a given company can keep raising capital and buying more bitcoin, because investors are showing interest in paying a premium for exposure to the stock relative to the firm’s bitcoin holdings.  If mNAV dips below that level, however, it means the value of the company is even lower than the value of its holdings. This can create significant problems for a firm’s ability to raise capital and, say, pay dividends on some of the convertible notes or preferred stock it may have issued.  

Shades of GBTC  Something similar happened to Grayscale’s bitcoin trust, GBTC, prior to its conversion into an ETF. A closed-end fund, GBTC during the bull market of 2020 and 2021 traded at an ever-growing premium to its net asset value as institutional investors sought quick exposure to bitcoin.  When prices turned south, however, that premium morphed into an abysmal discount, which contributed to a chain of blowups beginning with highly-leverage Three Arrows Capital and eventually spreading to FTX. The resultant selling pressure took bitcoin from a record high of $69,000 all the way down to $15,000 in just one year.

Read in full https://www.coindesk.com/markets/2025/05/23/strategy-slumps-6-leading-crypto-names-lower-as-bitcoin-treasury-strategies-are-questioned

[BayAreaCoins]

I would have shorted MSTR ASAP after seeing their cringe worthy pizza picture.

I don't have money in those markets, but it appears I wasn't the only one who thought that.