The microstrate, now known as ‘strategy’, reported a loss of $ 670m in Q4 mainly from bitcoin. Nevertheless, despite the hit, it continues to deposit BTC, believing in its long -term value.
Microstrategy has officially repaired as a strategy. Declared on 5 February, Rebranding comes with a new logo, characterized by a style “B”, which reflects her identity as bitcoin’s world’s largest corporate holder.
The step coincides with the company’s fourth consecutive quarterly damage and a more focus on bitcoin (BTC) accumulation.
Latest earnings ReportAlso released on 5 February, translated a net deficit of $ 670.8 million, $ 3.03 per share for the fourth quarter of 2024. A year ago, the company reported a profit of $ 89.1 million or 50 cents per share.
The deficit was largely operated with a loss of $ 1.01 billion on bitcoin holdings, which increased by $ 39.2 million recorded in the same quarter last year.
However, this will be the last time such loss will charge the earnings fee, as the company is ready to adopt the new Fair-Value Accounting Rules starting in the first quarter of 2025.
The new approach introduced by the Financial Stability Accounting Board will allow the strategy of reflecting the actual market value of bitcoin in its financial descriptions, potentially reported to reduce instability in the reported income.
Despite these financial failures, the strategy aggressively expands its bitcoin holdings. In the fourth quarter alone, the company purchased its largest bitcoin, which received 218,887 BTC for $ 20.5 billion.
As this writing, strategy Keeps 471,107 BTC, value of about $ 46 billion. The latest joint of its Treasury came on 27 January, when it priced 10,107 BTC to about $ 1.1 billion.
The competition to buy the tireless bitcoins of strategy has helped in its stock rally in the last one year, with shares climbing about five times in 2024 and the company earn a place in the NASDAQ 100 index in December.
However, the investor Bhavna was less enthusiastic around the latest earnings. On 5 February, MSTR shares fell 3.33%, which closed at $ 336.7, although the stock is more than 12% of the year over.
The company is also transferring its perspective to financing its bitcoin strategy. CEO Fong Le stated that in 2025, the strategy would put more emphasis on certain-yo financing, including convertible bonds and preferred stocks.
Last year, the company set an ambitious target to raise $ 42 billion in three years to fuel its bitcoin acquisition, with $ 20 billion already safe.
Meanwhile, how the company receives bitcoin, there is little adjustment. On 3 February, Executive Chairman Michael Sirer announced that, for the first time in 12 consecutive weeks, the strategy did not sell any shares to finance bitcoin shopping between 27 January and February 2.
Although it marks a temporary departure from its general point of view, the company is committed to increasing its bitcoin reserves over time.
