MicroStrategy rebrands to ‘Strategy’ after posting a $670M Q4 Bitcoin impairment loss
MicroStrategy, now generally known as ‘Technique,’ reported a staggering $670M impairment loss in This fall, primarily from Bitcoin. But, regardless of the hit, it continues accumulating BTC, believing in its long-term worth.
MicroStrategy has formally rebranded as Technique. Introduced on Feb. 5, the rebranding comes with a brand new emblem that includes a stylized “B,” reflecting its id because the world’s largest company holder of Bitcoin.
The transfer coincides with the corporate’s fourth consecutive quarterly loss and a good higher give attention to Bitcoin (BTC) accumulation.
The newest earnings report, additionally launched on Feb. 5, revealed a web lack of $670.8 million for the fourth quarter of 2024, translating to $3.03 per share. A yr earlier, the corporate had reported a revenue of $89.1 million, or 50 cents per share.
The losses have been largely pushed by a $1.01 billion impairment cost on its Bitcoin holdings, a pointy enhance from the $39.2 million recorded in the identical quarter final yr.
Nonetheless, this would be the final time such impairment costs impression earnings, as the corporate is about to undertake new fair-value accounting guidelines beginning within the first quarter of 2025.
The brand new strategy, launched by the Monetary Stability Accounting Board, will enable Technique to mirror Bitcoin’s precise market worth in its monetary statements, probably decreasing volatility in reported earnings.
Regardless of these monetary setbacks, Technique continues to aggressively develop its Bitcoin holdings. Within the fourth quarter alone, the corporate made its largest-ever Bitcoin buy, buying 218,887 BTC for $20.5 billion.
As of this writing, Technique holds 471,107 BTC, valued at roughly $46 billion. The newest addition to its treasury got here on Jan. 27, when it bought 10,107 BTC price round $1.1 billion.
Technique’s relentless Bitcoin shopping for spree has helped its inventory rally over the previous yr, with shares climbing almost five-fold in 2024 and incomes the corporate a spot within the Nasdaq 100 index in December.
Nonetheless, investor sentiment across the newest earnings was much less enthusiastic. On Feb. 5, MSTR shares fell 3.33%, closing at $336.7, although the inventory stays up over 12% year-to-date.
The corporate can be shifting its strategy to financing its Bitcoin technique. CEO Phong Le said that in 2025, Technique will place extra emphasis on fixed-income financing, together with convertible bonds and most well-liked inventory.
Final yr, the corporate set an bold objective to raise $42 billion over three years to gasoline its Bitcoin acquisitions, with $20 billion already secured.
In the meantime, there was a slight adjustment in how the corporate acquires Bitcoin. On Feb. 3, govt chairman Michael Saylor announced that, for the primary time in 12 consecutive weeks, Technique had not offered any shares to finance Bitcoin purchases between January 27 and Feb. 2.
Whereas this marks a short lived departure from its standard strategy, the corporate stays dedicated to growing its Bitcoin reserves over time.
