Bitcoin-focused business intelligence firm MicroStrategy, now rebranded as Strategy, is doubling down on its bold BTC bet despite a hefty quarterly loss.
As a sign of its commitment to its Bitcoin-first strategy, the company officially rebranded as Strategy on February 5, adopting a new name and logo featuring a stylized Bitcoin symbol.
However, its stock ticker on the Nasdaq remains MSTR.
According to the firm its primary color is now orange, which it said represents energy, intelligence, and Bitcoin.
The rebranding comes alongside a complete overhaul of its official website and the launch of new merchandise.
Founder and executive chairman Michael Saylor said the move “represents our pursuit of perfection.”
$670 million in net loss
Hours later, the US-based company also posted its quarterly earnings report, which flagged a $670.8 million net loss for Q4 2024.
It translates to $3.03 per share, a sharp contrast to the $89.1 million profit it reported in the same quarter a year earlier.
Q4 losses mark the fourth consecutive downturn for Strategy, with the biggest hit coming from a $1.01 billion impairment charge on its Bitcoin holdings.
Notably, in the previous quarter, impairment charges for the same period amounted to only $39.2 million in 2023.
Impairment charges refer to accounting expenses that companies record when the value of an asset drops significantly and is unlikely to be recovered.
Since Bitcoin is considered an intangible asset under current accounting rules, companies must report impairment losses if its market value drops below the purchase price.
However, they cannot mark Bitcoin’s value back up if it later recovers unless they sell it.
Strategy has vowed to address the impact of impairment losses by adopting fair-value accounting starting in Q1 2025.
With this approach, the company will be able to reflect Bitcoin’s actual market value in its financials and cut down on earnings volatility.
The report did not sit well with investors, and MSTR shares dropped over 3% on the day.
However, it’s up over 576% in the previous year according to Google finance data.
Strategy has continued stacking Bitcoin
Yet the financial hiccups haven’t deterred Strategy from continuing its aggressive Bitcoin accumulation.
According to the earnings report, it made its largest-ever Bitcoin purchase this quarter, adding 218,887 BTC for $20.5 billion.
Data from Bitcointreasuries show the company now holds 471,107 Bitcoin, acquired at an average cost of $64,580 per coin.
Alongside its massive Bitcoin purchases, Strategy’s Q4 expenses surged nearly 700% year-over-year, reaching $1.1 billion.
This is largely attributed to the execution of its “21/21 Plan,” a capital-raising strategy to secure up to $42 billion in funding over three years to support its Bitcoin buys.
$20 billion has already been secured via senior convertible notes and debt, with plans to raise the remaining amount through a mix of fixed-income securities and equity financing in the coming year.
Commenting on the subject, Phong Le, President and Chief Executive Officer at Strategy, said:
Looking ahead to the rest of 2025, we are well-positioned to further enhance shareholder value by leveraging the strong support from institutional and retail investors for our strategic plan.
As previously reported by Invezz, Strategy’s last purchase saw the firm acquire $1.1 billion worth of BTC before it halted its buying spree after 12 weeks.
Last week, MicroStrategy did not sell any shares of class A common stock under its at-the-market equity offering program, and did not purchase any bitcoin. As of 2/2/2025, we hodl 471,107 $BTC acquired for ~$30.4 billion at ~$64,511 per bitcoin. $MSTR microstrategy.com/press/microstr…
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