The Law Offices of Frank R. Cruz announces an investigation of MicroStrategy Incorporated d/b/a Strategy (“Strategy” or the “Company”) (NASDAQ: MSTR) on behalf of investors concerning the Company’s possible violations of federal securities laws.

What Is The Investigation About?
On April 7, 2025, Strategy disclosed that, following its adoption of Accounting Standards Update No. 2023-08 (“ASU 2023-08”), which requires publicly traded companies to measure their crypto assets at fair value in their financial statements, it recognized a $5.91 billion unrealized loss on its digital assets for the first quarter 2025. The Company warned that it “may not be able to regain profitability in future periods, particularly if [it] incur[s] significant unrealized losses related to [its] digital assets.”

On this news, Strategy’s stock price fell $25.47, or 8.7%, to close at $268.14 per share on April 7, 2025, thereby injuring investors.

Then, on May 1, 2025, Strategy released its first quarter 2025 financial results, confirming that it had recorded an unrealized fair value loss on digital assets of approximately $5.9 billion due to applying a fair value accounting methodology to Strategy’s bitcoin assets following bitcoin’s depreciation in value during the first quarter of 2025.