Strategy (MicroStrategy) Reports Q4 GAAP Loss of $3.03 Per Share, BTC Holdings of 471,107 Tokens

Strategy (MicroStrategy) Reports Q4 GAAP Loss of $3.03 Per Share, BTC Holdings of 471,107 Tokens

MicroStrategy Rebrands as ‘Strategy’ Amid Bitcoin-Centric Focus, Reports Q4 Loss

• The company formerly known as MicroStrategy has rebranded as Strategy to reflect its primary focus on Bitcoin rather than enterprise software.
• Strategy reported a Q4 net loss of $3.03 per share, a stark contrast to its $0.50 per share profit in the previous year.
• The loss was driven by an impairment charge on its massive 471,107 BTC holdings, currently valued at over $45 billion with Bitcoin trading above $97,000.
• Strategy did not yet adopt the Financial Stability Accounting Board’s (FASB) fair value accounting rule for digital assets but plans to do so in Q1 2025.
• The company is targeting a $10 billion dollar gain on its Bitcoin holdings in 2025.

A Major Rebrand and Financial Shake-Up

Strategy (MSTR), the newly renamed company previously known as MicroStrategy, announced a fourth-quarter net loss of $3.03 per share, compared to a profit of $0.50 per share in Q4 of the previous year. The loss primarily stemmed from an impairment charge on its 471,107 Bitcoin holdings, which continue to be the company’s dominant asset.

This rebrand underscores the company’s transformation from an enterprise software firm to a Bitcoin-first entity. Under the leadership of Executive Chairman Michael Saylor, Strategy has aggressively accumulated BTC, becoming the largest publicly traded corporate holder of Bitcoin.

Bitcoin Holdings and Market Strategy

Despite the reported loss, Strategy remains optimistic about its Bitcoin strategy. The company projects a $10 billion gain on its BTC holdings in 2025, betting on further appreciation of the cryptocurrency.

The decision not to adopt the FASB’s new fair value accounting rule for digital assets in Q4 2024 was a strategic choice, though the company confirmed it will comply with the new standards starting Q1 2025. This rule change will require corporations holding digital assets to report their fair market value rather than using traditional impairment accounting.

An Eventful Week for Strategy

Beyond earnings, Strategy has had a busy week, including:

• A name change from MicroStrategy to Strategy, marking a deeper commitment to Bitcoin.
• An upsizing of its preferred stock offering, increasing its capital reserves.

As the company moves forward, all eyes remain on its Bitcoin-driven financial strategy, positioning it as a corporate trailblazer in digital asset accumulation.