MicroStrategy, now ‘Strategy,’ reports Q4 net loss of $670.8 million, targets new ‘BTC $ Gain’ of $10 billion

The business intelligence firm and corporate bitcoin holder now known as Strategy reported fourth-quarter financial results Wednesday afternoon, highlighted by a near doubling of its already sizable bitcoin holding in only three months.Operating expenses for the quarter reached $1.103 billion, a 693% increase year-over-year. The company reported a net loss of $670.8 million, or $3.03 per diluted share. The company recorded total revenues of $120.7 million, which missed consensus estimates by about $3 million and down 3% from last year. As of Dec. 31, 2024, the company had cash and cash equivalents of $38.1 million, down from $46.8 million a year earlier. Strategy currently holds 471,107 bitcoin with a market value of about $44 billion. The fourth quarter marked its largest-ever increase in quarterly bitcoin holdings, culminating in the acquisition of 218,887 BTC acquired for $20.5 billion. The company reported a year-to-date BTC Yield of 74.3%, a measure it uses to assess the performance of its bitcoin strategy.As the firm describes it, "BTC Yield is a key performance indicator ('KPI') that represents the percentage change period-to-period of the ratio between the Company’s bitcoin holdings and its Assumed Diluted Shares Outstanding."In the company’s third-quarter earnings release last October, Strategy unveiled its "21/21 Plan," targeting $42 billion in capital over the next three years, split evenly between $21 billion in equity and $21 billion in fixed-income securities.“We have completed $20 billion of our $42 billion capital plan, significantly ahead of our initial timelines, while leading the digital transformation of capital in the financial markets," CEO Phong Le said in the release. "Looking ahead to the rest of 2025, we are well-positioned to further enhance shareholder value by leveraging the strong support from institutional and retail investors for our strategic plan."Strategy announced yet another new KPI, an annual “BTC Gain” and “BTC $ Gain,” with an annual “BTC $ Gain” target of $10 billion for 2025.BTC Gain represents the number of bitcoins held by the company at the beginning of a period multiplied by the BTC Yield for such period. BTC $ Gain represents the dollar value of the BTC Gain calculated by multiplying the BTC Gain by the market price of bitcoin as of 4 p.m. ET on the Coinbase exchange on the last day of the applicable period.Meanwhile, the company also announced that its convertible preferred stock Strike is expected to be listed on the Nasdaq on Thursday, under the ticker STRK.Strike's conversion ratio to the MSTR common stock is 10:1, and is said to offer investors an embedded perpetual call option on the volatile large-cap stock.While Strategy said last month that it will offer 2.5 million shares of STRK, its latest earnings report said the company issued 7.3 million shares at a public offering price of $80 per share. STRK offers a fixed dividend yield of 8%, and is expected to generate roughly $563.4 million in net proceeds from the offering, according to the report.  Rebrand to emphasize bitcoin standingEarlier in the day, the company announced its rebranding…strategy. Along with the name change, the brand’s primary color is now orange, which it says represents energy, intelligence and Bitcoin. Its new logo includes a stylized “B,” signifying the company’s Bitcoin strategy and its position as a Bitcoin treasury company.“Strategy is one of the most powerful and positive words in the human language," founder and executive chairman Michael Saylor stated in the release. "It also represents a simplification of our company name to its most important, strategic core. Antoine de Saint-Exupery said, ‘Perfection is achieved, not when there is nothing more to add, but when there is nothing left to take away.’ After 35 years, our new brand perfectly represents our pursuit of perfection.”Strategy's stock closed Wednesday’s market session at $336.70 per share, according to The Block's price data.After surging well over 500% throughout the past year, thanks in large part to 12 straight weeks of bitcoin purchases, the company has a market cap of $85 billion. Mizuho Securities recently said bitcoin's price has room to run another 30% in the next three years and expects Strategy's stock to follow suit.Updated with details on convertible preferred stock Strike.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.