Business intelligence firm Strategy has announced a significant expansion of its Bitcoin holdings, amid legal challenges.
Increase in Bitcoin Holdings
Strategy, the largest corporate holder of Bitcoin, announced a purchase of an additional $765 million worth of Bitcoin. The total amount now stands at 576,240 coins, with an average buying price approaching $70,000.
Controversy and Criticism
The situation is compounded by the growing number of detractors of co-founder Michael Saylor. Noted short-seller Jim Chanos has placed a bet against Strategy while also buying Bitcoin as a hedge. Saylor took to social media to warn short-sellers about betting against him.
Class Action Lawsuit Against the Company
The company has also disclosed a class action lawsuit filed by Anas Hamza in a Virginia federal court. The lawsuit alleges misleading statements regarding Bitcoin's risks. Strategy claims it will vigorously defend against the allegations, while its shares fell 2% in pre-market trading.
Thus, while expanding Bitcoin holdings significantly, Strategy is facing increasing criticism and legal complications.
