MicroStrategy Becomes ‘Strategy’ – Loses $670M But Still Betting Big on Bitcoin!
Key Highlights:
- MicroStrategy officially rebrands to Strategy, emphasizing its Bitcoin-centric vision.
- Reported $670.8 million net loss in Q4, driven by a $1.01 billion Bitcoin impairment charge.
- Strategy now holds 471,107 BTC, valued at approximately $44 billion.
- Introduced new KPIs: BTC Gain and BTC $ Gain, targeting $10 billion BTC $ Gain in 2025.
- Launched Strike Preferred Stock (STRK) to raise capital for further Bitcoin accumulation.
Rebranding to Strategy: A Bold Move Towards Bitcoin Dominance
MicroStrategy, the world’s largest corporate holder of Bitcoin, has officially rebranded to Strategy. Announced on February 5, the company’s new identity comes with a revamped logo featuring a stylized “B”, signifying its deep-rooted commitment to Bitcoin accumulation and adoption.
The rebrand coincides with Strategy’s fourth consecutive quarterly loss, yet the company remains unfazed, doubling down on its Bitcoin investment strategy with ambitious financial targets.
Q4 Financials: A $670M Blow, But A Strategic Shift Ahead
Strategy’s latest earnings report revealed a net loss of $670.8 million for Q4 2024, equating to a $3.03 per share loss. This marks a stark contrast to the $89.1 million profit reported a year earlier. The losses were primarily driven by a massive $1.01 billion Bitcoin impairment charge, a steep rise from $39.2 million in the same quarter last year.
However, this will be the final time impairment charges affect earnings, as Strategy transitions to new fair-value accounting rules in Q1 2025. This Financial Stability Accounting Board (FASB) rule change will allow the company to reflect Bitcoin’s actual market value, reducing earnings volatility and providing a clearer financial picture.
Massive Bitcoin Holdings and Future Plans
Despite quarterly losses, Strategy remains bullish on Bitcoin. The company now holds 471,107 BTC, valued at approximately $44 billion. The fourth quarter saw its largest-ever quarterly BTC acquisition, with 218,887 BTC purchased for $20.5 billion.
Strategy also unveiled two new key performance indicators (KPIs):
- BTC Gain – Measures Bitcoin holdings’ performance.
- BTC $ Gain – Targets a $10 billion BTC $ Gain in 2025.
Capital Raise Through Strike Preferred Stock (STRK)
To fund further Bitcoin purchases, Strategy introduced Strike Preferred Stock (STRK). The public offering of STRK shares, priced at $80 per share, generated over $563 million. Starting March 31, 2025, STRK shares will hold a $100 liquidation preference and accrue fixed-rate dividends, offering an 8% dividend yield.
Additionally, Strategy’s convertible preferred stock STRK is expected to be listed on Nasdaq, under the ticker STRK. Investors will benefit from a 10:1 conversion ratio to MSTR common stock, providing a unique exposure to Bitcoin’s volatility.
Outlook for 2025: Bitcoin-Centric Growth
CEO Phong Le remains optimistic, stating:
“We have completed $20 billion of our $42 billion capital plan, significantly ahead of schedule. Looking ahead, we are well-positioned to enhance shareholder value through our Bitcoin-first strategy.”
Strategy aims to expand its Bitcoin holdings aggressively while leveraging institutional and retail investor support. With new accounting standards reducing earnings volatility and innovative funding strategies in place, the company is poised to maintain its dominance as the leading corporate Bitcoin holder.
As Bitcoin adoption grows, Strategy’s commitment to the digital asset remains unwavering, reinforcing its mission to integrate Bitcoin as a core component of corporate treasury management.
