Strategy Shareholder Sues Board Over Crypto Accounting Change

Strategy brass didn’t adequately warn investors about the impact of new accounting standards on the Bitcoin treasury’s financial results, a shareholder lawsuit said.

The former MicroStrategy Inc., disclosed it would post an unrealized $5.9 billion loss for the first quarter after adopting the rule to value its digital assets at market price, said the stockholder’s complaint filed in the US District Court for the Eastern District of Virginia on Thursday. The bitcoin treasury company’s stock price fell 8.7% on April 7, the day Strategy noted the loss in a Securities and Exchange Commission filing, said the shareholder derivative action, ...