Recently rebranded as Strategy, the Bitcoin investment firm previously known as MicroStrategy has reported a net loss of $670.8 million for the fourth quarter, even as it increased its Bitcoin holdings by a further 218,887 units.
The company reported quarter four revenues of $120.7 million, indicating a 3% drop from the same period in the previous year and falling short of analyst predictions by approximately $2 million. Reflecting the firm’s commitment to its ambitious “21/21 Plan” aimed at amassing $42 billion in capital over three years, expenses for the last quarter rose to $1.1 billion, a nearly 700% increase year-on-year.
Of the targeted $42 billion, Strategy has already achieved almost half by raising $20 billion, thanks to the decisive acquisition of senior convertible notes and debt. The company’s CEO, Phong Le, has expressed optimism, stating that the firm is “significantly ahead” of its projected timeline and is advantageously positioned to further augment shareholder value, noting encouraging backing from institutional and retail investors.
As of now, Strategy possesses 471,107 Bitcoin, valued at more than $45 billion. This significant holding makes it the universe’s largest corporate Bitcoin holder.
To better represent the firm’s fiscal health, it has introduced the “BTC Yield,” “BTC Gain,” and “BTC $ Gain” metrics on its new website. “BTC Yield” is a key performance indicator showing the change ratio between its Bitcoin and its Assumed Diluted shares, standing at 74.3% in 2024 and targeted to reduce to 15% for 2025. “BTC Gain” denotes the number of Bitcoin held at the start of a period, multiplied by the BTC Yield for that period, while “BTC $ Gain” indicates the dollar value of the BTC Gain.
Strategy underwent a rebrand from MicroStrategy on February 5 and added the Bitcoin logo next to its name, signifying its pledge to corporate Bitcoin adoption. It will continue to provide business intelligence services even with this rebranding. However, these changes have not boosted the company’s share values, and the price fell 3.3% during February 5th trading to $336.70 with a further 0.72% decrease in after-hours.