Bitcoin stacking firm Strategy, formerly known as MicroStrategy, has reported a net loss of $670.8 million for the fourth quarter. This loss was incurred as the firm acquired an additional 218,887 Bitcoin.
In the fourth quarter, Strategy generated $120.7 million in revenue, a 3% decrease compared to the previous year. This figure fell short of analyst estimates by approximately $2 million.
The company’s expenses for the fourth quarter increased by nearly 700% compared to the previous year, reaching $1.1 billion. This surge in expenses was a result of the implementation of the “21/21 Plan,” which aims to raise $42 billion in capital over the next three years through the purchase of equity and fixed-income securities to acquire more Bitcoin.
Strategy disclosed that it has already completed $20 billion of the $42 billion capital plan, primarily through the issuance of senior convertible notes and debt, resulting in a significant increase in its Bitcoin holdings. The firm’s CEO and president, Phong Le, stated that the company is currently ahead of schedule and well-positioned to create value for its shareholders, thanks to the strong support received from institutional and retail investors for its strategic plan.
As of now, Strategy holds 471,107 Bitcoin, valued at over $45 billion, making it the largest Bitcoin holder among all corporations worldwide.
Strategy’s key performance indicator (KPI), known as “BTC Yield,” which represents the percentage change ratio between its Bitcoin holdings and its assumed diluted shares outstanding, reached 74.3% in 2024. However, the company is aiming to lower this target to 15% for 2025. Additionally, Strategy has introduced the metrics “BTC Gain” and “BTC $ Gain” on an annual basis to provide a better reflection of the company’s financial position.
On February 5th, Strategy rebranded from MicroStrategy, the name it had held since its establishment as a business intelligence firm in November 1989 under the leadership of executive chairman Michael Saylor. Saylor has been instrumental in driving the company’s Bitcoin investment strategy. The inclusion of the Bitcoin logo, “₿,” in the company’s new name signifies its dedication to corporate Bitcoin adoption. Strategy will continue to offer business intelligence services.
On February 5th, Strategy’s stock (MSTR) experienced a 3.3% decline, closing at $336.70. According to data from Google Finance, the stock has further dropped by 0.72% in after-hours trading.