MicroStrategy Becomes ‘Strategy’ but Still Bleeds Cash: $670M Loss Amid Bitcoin Bet ⚡
MicroStrategy has officially rebranded as Strategy, signaling a stronger commitment to its Bitcoin-focused vision. However, despite the fresh look, the company posted a staggering $670.8 million loss in Q4 2024, largely due to a $1.01 billion impairment on its Bitcoin holdings.
Rebranding for a Bitcoin-Centric Future
On February 5, MicroStrategy unveiled its new identity as Strategy, with a revamped logo featuring a stylized Bitcoin symbol. While the company’s ticker remains MSTR, its branding now fully embraces Bitcoin, even adopting orange as its primary color—symbolizing energy, intelligence, and BTC.
Massive Q4 Losses: Bitcoin Impairment Hits Hard
Just hours after the rebrand, Strategy released its fourth consecutive quarterly loss, reporting a $3.03 per share deficit, a stark contrast to its $89.1 million profit a year ago.
• The primary reason? A record-breaking $1.01 billion impairment charge on its Bitcoin stash.
• By comparison, the same charge was just $39.2 million in Q4 2023.
• This massive accounting loss weighed down Strategy’s stock, which dropped over 3% after the earnings report.
To counter this issue, the company will adopt fair-value accounting in Q1 2025, allowing it to reflect Bitcoin’s actual market value and smooth out earnings volatility.
Doubling Down: Bitcoin Stash Grows to 471,107 BTC
Despite the financial blow, Strategy continues to aggressively buy Bitcoin.
• Q4 2024 Bitcoin purchase: 218,887 BTC at a cost of $20.5 billion.
• Total holdings: 471,107 BTC acquired at an average price of $64,580 per coin.
The company is executing its “21/21 Plan”, aiming to raise up to $42 billion over three years to fund its Bitcoin acquisitions. So far, it has secured $20 billion via debt and convertible notes, with plans to raise the rest through a mix of securities and equity financing.
What’s Next for Strategy?
Despite mounting losses, CEO Phong Le remains optimistic, emphasizing strong investor support. With its aggressive Bitcoin-first strategy, Strategy is positioning itself as the largest corporate BTC holder—but at what cost?
Will this gamble pay off, or will Strategy’s finances continue to bleed? Stay tuned!
MicroStrategy has officially rebranded as Strategy, signaling a stronger commitment to its Bitcoin-focused vision. However, despite the fresh look, the company posted a staggering $670.8 million loss in Q4 2024, largely due to a $1.01 billion impairment on its Bitcoin holdings.
Rebranding for a Bitcoin-Centric Future
On February 5, MicroStrategy unveiled its new identity as Strategy, with a revamped logo featuring a stylized Bitcoin symbol. While the company’s ticker remains MSTR, its branding now fully embraces Bitcoin, even adopting orange as its primary color—symbolizing energy, intelligence, and BTC.
Massive Q4 Losses: Bitcoin Impairment Hits Hard
Just hours after the rebrand, Strategy released its fourth consecutive quarterly loss, reporting a $3.03 per share deficit, a stark contrast to its $89.1 million profit a year ago.
• The primary reason? A record-breaking $1.01 billion impairment charge on its Bitcoin stash.
• By comparison, the same charge was just $39.2 million in Q4 2023.
• This massive accounting loss weighed down Strategy’s stock, which dropped over 3% after the earnings report.
To counter this issue, the company will adopt fair-value accounting in Q1 2025, allowing it to reflect Bitcoin’s actual market value and smooth out earnings volatility.
Doubling Down: Bitcoin Stash Grows to 471,107 BTC
Despite the financial blow, Strategy continues to aggressively buy Bitcoin.
• Q4 2024 Bitcoin purchase: 218,887 BTC at a cost of $20.5 billion.
• Total holdings: 471,107 BTC acquired at an average price of $64,580 per coin.
The company is executing its “21/21 Plan”, aiming to raise up to $42 billion over three years to fund its Bitcoin acquisitions. So far, it has secured $20 billion via debt and convertible notes, with plans to raise the rest through a mix of securities and equity financing.
What’s Next for Strategy?
Despite mounting losses, CEO Phong Le remains optimistic, emphasizing strong investor support. With its aggressive Bitcoin-first strategy, Strategy is positioning itself as the largest corporate BTC holder—but at what cost?
Will this gamble pay off, or will Strategy’s finances continue to bleed? Stay tuned!