Michael Saylor’s Strategy reports a $671 million loss for the quarter

What’s new? Michael Saylor’s MicroStrategy, a US-based analytics software company, has rebranded and changed its name to Strategy. A bitcoin icon has been added to the logo and the corporate color has been changed to orange, which is also traditionally associated with the first cryptocurrency. Strategy is the largest holder of BTC among publicly traded companies, having accumulated 471 107 coins since 2020 with a purchase value of $30,4 billion or $64 511 apiece. Including the current exchange rate, Strategy has an unrealized gain of $15,9 billion.

Press release

What else is known? Strategy also released its Q4 2024 financial report, reporting a net loss of $670,8 million or $3,03 per share on a diluted basis, compared to a profit of $89,1 million or $0,5 per share in Q4 2023. As of December 31, 2024, cash and cash equivalents were $38,1 million compared to $46,8 million a year earlier.

Operating expenses increased 693% year-over-year to $1,103 billion. Operating expenses include impairment losses on digital assets, which totaled $1,006 billion, up from $39,2 million a year earlier.

Since January 1, 2025, the company implemented accounting rule ASU 2023-08, which allows its bitcoin assets to be measured at fair value, with gains and losses from changes in the fair value of BTC recognized in net income each reporting period. Until then, the company had been writing down the value of its bitcoin assets for depreciation.

Analysts noted that adopting the new accounting rules will allow Strategy to count on inclusion in the S&P 500 index due to positive financial results, but it could also entail serious tax liabilities. Strategy was already included in the Nasdaq 100 index late last year.

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The report also says that BTC has returned 74,3% since the beginning of 2024. Strategy uses this figure to measure the performance of its bitcoin strategy as a KPI, which is the percentage change in the ratio between the company’s bitcoin holdings and its estimated diluted shares outstanding.

Now the company has introduced two more key performance indicators: BTC profit and BTC profit in US dollars. BTC profit is the number of bitcoins in the company’s possession at the beginning of a period multiplied by the BTC yield for that period.

BTC profit in dollars is calculated by multiplying BTC profit by the market price of bitcoin at the Coinbase exchange rate on the last day of the relevant period. Strategy expects this figure to reach $10 billion by the end of 2025.

Last October, Strategy unveiled its 21/21 plan, aiming to raise $42 billion in capital over the next three years, to be split between $21 billion in equity and $21 billion in fixed-income securities.

President and CEO Phong Le said the company has already raised $20 billion, well ahead of the deadline:

“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.”

The company announced that its Strike convertible preferred stock is scheduled to be listed on the Nasdaq exchange under the ticker STRK on February 6. It has already issued 7,3 million STRK at $80 per share. STRK offers a fixed dividend yield of 8% and the offering is expected to raise net proceeds of $563,4 million.

The conversion ratio of Strike to Strategy common stock under the ticker MSTR is 10:1. MSTR is trading at $336,7 at the time of writing, having lost 3% overnight. The one-month drop was 4%, but the security has gained 148% and 583% over the past six months and year, respectively. Strategy’s capitalization is $84,6 billion.