Law Firm Opens Investigation Into Strategy And Its Preferred Stock — What Investors Need To Know

Strategy (MSTR), the publicly traded company that holds more Bitcoin (BTC) than any other firm in the world, is now the subject of a formal legal investigation. 

Rosen Law Firm has opened an inquiry into the company — previously known as MicroStrategy — and its preferred stock STRC, over allegations that the firm may have issued materially misleading information to investors.

Strategy Faces Class Action Threat 

According to the law firm’s press release, the investigation centers on whether Strategy’s public communications regarding its Bitcoin holdings and business operations were transparent and fully compliant with disclosure regulations. 

Rosen Law Firm is preparing a class action lawsuit seeking to recover losses on behalf of affected investors. Notably, investors who purchased Strategy securities may be entitled to compensation through a contingency fee arrangement — meaning no out-of-pocket costs are required to participate in the potential legal action.

Amid broader bearish market conditions, Strategy recently recorded its largest-ever unrealized Bitcoin loss of $12 billion following a BTC sale, exceeding any previous profit the company had reported.

Bitcoin Crash Is Dragging MSTR And STRC

Bitcoin, currently trading around $59,400 at the time of this writing, is down 5% over the past week, adding pressure to a balance sheet that is almost entirely tied to the performance of one asset.

The crypto stock market has followed BTC’s price action. STRC, Strategy’s preferred stock, hit a new all-time low of $74 on Thursday. MSTR, the company’s common stock, fell 8% to around $86 — its lowest level in 28 months. 

Adding to the broader concern, investors in prediction market giant Polymarket, have flagged a record 67% probability that Bitcoin could fall below $50,000 before the end of 2026, based on current market conditions. 

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