Michael Saylor, Chairman and CEO of MicroStrategy, has once again suggested the company would acquire more Bitcoin, despite facing backlash from investors over a significant Q1 loss related to its substantial Bitcoin holdings.

Sunday, Saylor shared a chart illustrating MicroStrategy’s historical Bitcoin purchases on X, accompanied by the cryptic caption: “Nothing Stops This Orange.” This post closely follows his pattern preceding known Bitcoin purchases.

MicroStrategy maintains the largest publicly traded Bitcoin portfolio, holding approximately 592,100 BTC, valued at around $59.7 billion as Bitcoin trades near $101,000.

Lawsuit Over $5.9 Billion Bitcoin Loss

Saylor’s statement followed a shareholder derivative lawsuit filed the preceding Thursday. Abhey Parmar alleges Saylor, CEO Phong Le, CFO Andrew Kang, and four board members breached their fiduciary duties by failing to adequately disclose the impact of adopting a new Financial Accounting Standards Board (FASB) rule.

The complaint contends that in January, MicroStrategy implemented a FASB standard effective mid-December 2023. This change permits companies holding cryptocurrency to value it on their balance sheets at current market price.

According to Parmar, this accounting shift resulted in a substantial, unrealized $5.9 billion loss being recorded for MicroStrategy’s Bitcoin position in its Q1 results released in early April. This revelation caused the company’s stock price to drop nearly 9%.

The suit further accuses MicroStrategy’s executives of failing to accurately disclose the full consequences of the accounting change and misrepresenting Bitcoin’s relative stability.

Executive Compensation Under Scrutiny

A key allegation within the derivative complaint concerns nearly $31.5 million in insider stock sales by executives Parmar claims occurred while the stock was artificially propped up before the FASB impact was disclosed.

Class Action Lawsuit Filed

A separate class-action lawsuit was also initiated mid-May by Anas Hamza, again challenging MicroStrategy’s accounting treatment. Hamza alleges the company concealed the negative impact and associated risks (particularly volatility) inherent in the investment strategy when adopting the FASB rule.

MicroStrategy indicated it would “vigorously defend against these claims.”