Bitcoin (BTCSince the release of company safety on July 22, the Ministry of Finance’s strategy has expanded the scope of its STRC products twice.
The company announced products available in its variable rate series A Perpetual Stretch Expeipred Stock (Strc), a hybrid company security, to buy more BTC Thursday.
STRC is the security of dividend payments, with variable output, no set expiration date yet, and can be called or redeemed by the company under certain conditions, giving the repayment terms flexibility. announcement.
company Strc was launched in Julyfixed the company’s guaranteed share to $100, initially seeking $500 million in capital raising.
strategy Expanded salary increase Two days after launching Strc, it reached $2 billion, select investors through an initial public offering (IPO), and Purchased over 21,000 BTC Subsequent funds.
Its debt- and equity-driven BTC purchases continue to separate cryptocurrency and investment communities. Some analysts believe that strategy and other BTC treasury games are bubbles waiting to burst, which could have an impact in the cryptocurrency market.
Investor litigation against strategic accumulation
Multiple law firms owned File a lawsuit against the company Representative plaintiffs claimed that the company misrepresented Bitcoin’s volatility risks and expected profits.
Cointelegraph spoke with several attorneys who disagree based on the nature of the claim and said the lawsuit could take years to resolve.
“The plaintiffs claimed that profitability was exaggerated and the risks were underestimated, not that these things were completely undisclosed,” lawyer Brandon Ferrick told Cointelegraph.
Many lawsuits are characterized by similar claims that strategies are deceptive about the use of alternative financial indicators, allowing companies to mask financial losses, which would be obvious if different accounting methods were used.
“The company has introduced some new key performance indicators (KPIs), namely BTC yield, BTC earnings and BTC Dollar earnings – to measure its financial performance,” said one of a class action lawsuit.
Strategy co-founder and Bitcoin advocate Michael Saylor opposes criticism of the company’s business model, arguing that Strategies are misunderstood companies.
“We have leveraged the most innovative technologies and assets in human history; on the other hand, we are probably the most likely misunderstood and undervalued stocks in the United States and its world,” Saylor said in the company’s recent earnings call.
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