Lead plaintiffs have voluntarily dropped their lawsuit against Bitcoin treasury giant Strategy, ending the case with prejudice in a move that signals a win for one of the most prominent corporate BTC holders.
A Thursday court filing showed that plaintiffs Michelle Clarity and Mehmet Cihan Unlusoy, along with investor Anas Hamza, submitted a stipulation for dismissal. Because the case was dismissed with prejudice, the plaintiffs cannot amend the complaint or refile it, effectively closing the door on further litigation over the same claims. Importantly, the case was never certified as a class action, meaning the dismissal only applies to the named plaintiffs and does not bar absent shareholders from pursuing their own claims in the future.
“The dismissal with prejudice means the case is over and cannot be re-filed in the same court, or any court, on the same claim,” Brandon Ferrick, general counsel at Duoro Labs, explained to Cointelegraph.
The lawsuit, originally filed in May 2025, accused Strategy of making misleading statements regarding the profitability and risks of its massive Bitcoin holdings. Within weeks of the initial filing, at least eight law firms had sought to represent dissatisfied investors, underscoring how closely Strategy’s treasury strategy has been scrutinized by regulators, investors, and the legal community.
Founded as the world’s first dedicated Bitcoin treasury firm, Strategy has amassed 632,457 BTC — worth about $68.4 billion — since beginning its accumulation in 2020, according to BitcoinTreasuries.NET. Its aggressive approach has influenced a wave of corporate treasuries adopting similar models, with Ether, Solana, BNB, and Tron increasingly appearing on balance sheets across industries.
Crypto attorneys argue that the rise of “crypto treasury companies” makes transparency a crucial issue. “They operate like actively managed ETFs but in a company wrapper. Management needs to be as transparent and direct as possible, especially given the volatility of digital assets,” said Tyler Yagman of The Ferraro Law Firm.
Despite the dismissal, Strategy’s stock barely moved Friday, slipping 0.8% in line with the broader Nasdaq index. The limited reaction reflects how investors may already view the company’s legal risks as priced in, even as the ruling could bolster confidence in crypto treasury models more broadly.
