MicroStrategy, now known as ‘Strategy,’ reported a staggering $670M impairment loss in Q4, mainly from Bitcoin. Yet, despite the hit, it continues accumulating BTC, believing in its long-term value.
MicroStrategy has officially rebranded as Strategy. Announced on Feb. 5, the rebranding comes with a new logo featuring a stylized “B,” reflecting its identity as the world’s largest corporate holder of Bitcoin.
The move coincides with the company’s fourth consecutive quarterly loss and an even greater focus on Bitcoin (BTC) accumulation.
The latest earnings report, also released on Feb. 5, revealed a net loss of $670.8 million for the fourth quarter of 2024, translating to $3.03 per share. A year earlier, the company had reported a profit of $89.1 million, or 50 cents per share.
The losses were largely driven by a $1.01 billion impairment charge on its Bitcoin holdings, a sharp increase from the $39.2 million recorded in the same quarter last year.
However, this will be the last time such impairment charges impact earnings, as the company is set to adopt new fair-value accounting rules starting in the first quarter of 2025.
The new approach, introduced by the Financial Stability Accounting Board, will allow Strategy to reflect Bitcoin’s actual market value in its financial statements, potentially reducing volatility in reported earnings.
Despite these financial setbacks, Strategy continues to aggressively expand its Bitcoin holdings. In the fourth quarter alone, the company made its largest-ever Bitcoin purchase, acquiring 218,887 BTC for $20.5 billion.
As of this writing, Strategy holds 471,107 BTC, valued at approximately $46 billion. The latest addition to its treasury came on Jan. 27, when it purchased 10,107 BTC worth around $1.1 billion.
Strategy’s relentless Bitcoin buying spree has helped its stock rally over the past year, with shares climbing nearly five-fold in 2024 and earning the company a spot in the Nasdaq 100 index in December.
However, investor sentiment around the latest earnings was less enthusiastic. On Feb. 5, MSTR shares fell 3.33%, closing at $336.7, though the stock remains up over 12% year-to-date.
The company is also shifting its approach to financing its Bitcoin strategy. CEO Phong Le stated that in 2025, Strategy will place more emphasis on fixed-income financing, including convertible bonds and preferred stock.
Last year, the company set an ambitious goal to raise $42 billion over three years to fuel its Bitcoin acquisitions, with $20 billion already secured.
Meanwhile, there has been a slight adjustment in how the company acquires Bitcoin. On Feb. 3, executive chairman Michael Saylor announced that, for the first time in 12 consecutive weeks, Strategy had not sold any shares to finance Bitcoin purchases between January 27 and Feb. 2.
While this marks a temporary departure from its usual approach, the company remains committed to increasing its Bitcoin reserves over time.
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