MicroStrategy stock plunge prompts class-action suit and Bitcoin valuation criticism

MicroStrategy’s shares have tumbled sharply, falling about 27% over five trading sessions and over 80% from their peak, leaving the stock trading at roughly a 40% discount to the value of its Bitcoin holdings. Rosen Law Firm has opened a proposed class‑action investigation, alleging that the company and certain executives may have made materially misleading statements about its business and Bitcoin‑related securities.

Economist Peter Schiff warned that the steep decline could signal a “death‑spiral” for the stock and added that Bitcoin cannot be considered “cheap” because it lacks traditional valuation metrics such as earnings, yield or book value. While some analysts dispute the death‑spiral claim, the episode has intensified scrutiny of corporate Bitcoin exposure and the valuation of crypto‑linked investment vehicles.